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Utility Model

Offerings > Systems Integration | Hardware Provision | Hardware Rental | Utility Model | Independent Maintenance

Because of the increasing pace of change in today's competitive business environment, businesses have to react much quicker to customer demands. Having the ability to tap into additional computing resources quickly and inexpensively becomes a critical task.

On top of that, the need to optimize cashflow has become even more important. Gone are the days where businesses can afford to invest in additional and idle resources upfront just so that these resources can be used when the needs call for them.

Peremeks recognizes this set of conflicting goals: wanting to cater for all contingencies and at the same time having to commit minimum financial resources upfront. Our Utility Model delivers a solution that resolves this conflict. With Utility Model, you get resource and capacity on demand with minimal upfront cash investment.

Maximal Flexibility with Minimal Commitment | Graphical Representation of Potential Savings | Financial Illustration

Maximal flexibility with minimal commitment.

Maximal flexibility
Free your business from heavy financial commitment on resources that you are not utilizing.

The Utility Model is based on the simple premise that you should not pay for more than what you use. The traditional procurement approach necessitates that you plan ahead for forecasted capacity so that your resources can support your business when the requirement arises. The downside of this approach is that these excess capacities are wasted until the actual requirement arrives. Any additional load beyond what you planned for will also be hard to activate due to budgeting and delivery lag constraints.

With Utility Model, you not only not have to invest upfront, you also get to activate additional resources as when your business requires them. You only pay for the resources upon their activation.

And unlike other similar models offered by the market, Peremeks' Utility Model also gives you the option to locate the resources in your own premise so that you have dedicated access to the resources. The availability of this option is critical when you do not wish to share your resources with other users.

You start off with a baseline config, with only a small baseline fee.
You have the option to activate resources, which will be charged a variable fee.
And you have the option to opt for technology refresh.

You acquire computing power, not specific models.
You don't pay upfront the entire cost, but instead a recurring, usually monthly, fee.
You don't get the full config at once. You start off with a base, then you activate additional resources on demand.
You don't own the machine and becomes heavily laden in asset.

Competitive business environment
Need to keep technological relevance
Capacity demand is varied
IT budget is limited
Needs forecast-able budget

It is NOT leasing
It is NOT grid computing

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Graphical representation of possible
cost savings using utility model

Utility model explained in graph

Baseline payment + Pay as use ($A+$B+$C+$D+$E)
= approx. 85% Full payment.

Best of all, Peremeks has integrated the Utility Model across our full range of offerings. Our unique and powerful Utility Model allows you to focus on your core business, doing what you do best. Leave the rest of the work in our good hands.

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Financial illustration of the difference between upfront purchase, leasing and utility model

Figures are based on an example and are for illustrative purpose only.

YR 1
YR 2
YR 3
YR 4
YR 5

upfront purchase

utility model


100k2 100k2 1,200k

300k 300k 300k 300k 300k 1,500k3

120k4 150k4 200k4 280k4 350k4 1,100k

Up-front investment includes hardware and 3-year maintenance fee.
Annual maintenance charges at 10% of original hardware purchase cost.
Total figure based on flat interest rate of 5% p.a.
Yearly figure based on baseline payment and increasing variable component due to activation of additional resources to match increased business requirements.

In short, this capacity-on-demand approach gives you maximum flexibility and maximum options with minimum commitment.

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