Dell Launching Subscription Model to Counter Amazon, Microsoft

Dell Technologies is introducing a new subscription-based service called Dell Technologies on Demand, which allows businesses to pay less upfront for hardware and cloud services, adopting a pay-as-you-go model similar to those used by cloud companies like Amazon and Microsoft. This shift is expected to increase recurring revenue and align with market trends, as predicted by Gartner. Analysts and investors are interested in how this model will be received in the hardware sector.

What is the new subscription model introduced by Dell Technologies?

How does the new model differ from traditional payment methods for hardware?

What percentage of data center hardware deals is expected to be on a pay-per-user pricing model by 2022?

What are the potential benefits of the subscription model for customers?

How do analysts view the shift to a subscription model in the context of recurring revenue?