The rising cost of capital can have significant implications for IT investment strategies and business value optimization. As the cost of capital rises, it’s important for IT organizations to adapt their approach and focus on solutions that increase cost-efficiency, productivity, digital resiliency, and business acceleration. By shifting traditional CapEx expenditures to as-a-Service and subscription-based offers, organizations can mitigate some of the challenges that come with cost of capital increases, all while creating value, increasing agility and scalability, enhancing risk management, and leveraging partnerships and collaborations. This helps businesses navigate high-cost-of-capital environments and optimize value derived from their IT investments. Therefore, it’s crucial that organizations adapt this approach to IT investments to effectively address this changing economic landscape.
The increase in the cost of capital has significant implications at end user enterprises for IT decisions and can impact business value. As such, this provides a uniquely compelling opportunity for solution providers to step in and assist. So where do solution providers turn when evaluating who to partner with to deliver on these solutions?
With the breadth and flexibility of its solutions, Dell APEX can help by delivering cost-efficiency, enhanced productivity, robust digital resiliency, focused business acceleration, and flexible as-a-Service (aaS) and subscription-based offers. These strategies and tactics immediately mitigate the rising cost of capital for customers while also increasing partners’ services revenues. Let’s take a quick look at how APEX helps in these key areas.
1. Increasing Cost-Efficiency: Higher cost of capital typically leads to increased scrutiny of IT spending, pushing organizations to seek cost-effective solutions. APEX can help partners to instantly optimize their customers’ IT infrastructure costs by providing scalable, on-demand resources that can be consumed as needed.
2. Enhancing Productivity: When the cost of capital increases, end user organizations need to ensure that their IT investments are generating a positive return. APEX helps partners to enhance customer productivity with solutions that can streamline IT operations and automate routine tasks, allowing IT teams to focus on more strategic initiatives.
3. Improving Digital Resiliency: In a high-cost-of-capital environment, enterprises need to minimize downtime and ensure continuity of operations. The APEX portfolio includes solutions that address disaster recovery, backup, and data protection, helping your customers to maintain operations even in the face of unexpected disruptions.
4. Accelerate Business Goals: As your customers look for ways to maximize returns on investment, they need IT solutions that can support growth and drive innovation. APEX enables business acceleration by providing agile, scalable infrastructure that can quickly adapt to changing business requirements, allowing end user organizations to seize new opportunities and stay ahead of the competition.
5. Embrace Flexible As-a-Service (aaS) and Subscription-based models: APEX's aaS and subscription-based models can be particularly attractive in a high-cost-of-capital environment. These models shift IT spending from traditional capital expenditures (CapEx) to subscription-based models, allowing customers to align their IT spending with actual consumption. By only paying for the resources they use, customers can better manage their cash flow and reduce financial risk.
6. The Contemporary Model: Customers are more open than ever to explore partnerships and collaborations with technology providers, cloud service providers (CSPs), and other industry partners. APEX offerings enable solution providers immediate access to specialized expertise, shared costs and risks, and the ability to drive continued innovation.
APEX can help in a multitude of ways. With APEX, your customers can choose from a variety of public, private, and hybrid cloud solutions that you can tailor to meet their unique requirements. The APEX portfolio is crafted to deliver a seamless, secure, and cost-effective experience, providing customer organizations with the flexibility to adapt and grow with ease while mitigating cost of capital impacts.
With Dell APEX you can easily and successfully help your customers effectively navigate the challenges presented by a high-cost-of-capital environment and optimize the value derived from their IT investments – all while growing your services business.