Feeds

Subscribe to our hardware, says Brocade

Install now, buy by the port later

Mobile application security vulnerability report

Hoping to use its elbows against Cisco’s hold on the data centre market, Brocade has decided on a pitch to the bean-counters: switches that you pay for according to the ports you’re using.

The "network subscription" pricing model, unveiled at VMWare’s cloud-fest VMWorld, works like this: Brocade will ship and install the switch into the data centre, but the customer will pay a monthly fee based on the number of ports enabled during the month.

In other words, as cloud loads scale up or down (and network loads rise and fall with them), the number of ports the customer pays for will also rise and fall.

ANZ regional director Graham Schultz told Oz media and analysts at a presser on Wednesday August 31 that this approach would be suitable for customers spending in excess of $AU500,000.

He said data centre investors face a problem: they know they will have to provision their hardware – and therefore spend their money – ahead of full utilization. In other words, Schultz said, the purchase of hardware to fit out a data centre inevitably results in idle capital.

Because it’s difficult, pre-launch, to predict the likely loads in a data centre, he said service providers “tend to over-invest in equipment”, after which they have to wait for their sales successes to get their returns.

In the “network subscription” model, Schultz said, “we put the kit on the floor, and we bill the customers for the ports they use.” Pricing is, of course, dependent on which kit the customer is buying, and how much.

There’s a side-benefit to the CFO: this model turns even the network hardware into an operational expenditure rather than capital – making it more attractive from a taxation point of view.

It is, however, an approach that carries risks for Brocade: it, rather than the customer, is assuming the up-front capital risk for an installation; and second, the financial viability of the “network-as-a-service” model depends on Brocade’s ability to create a workable billing system.

There is also the risk of push-back from the channel, since Brocade will only offer the network subscription products direct. ®

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
Seagate chances ARM with NAS boxes for the SOHO crowd
There's an Atom-powered offering, too
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.