Q&A: Carousel Execs On The Cisco Partnership And How OpEx Models Are Changing The Channel
What percentage of customers are you seeing wanting to buy OpEx versus CapEx?
Jeff Gardner (JG): We have customers saying, "No more CapEx. I want to buy everything OpEx. That's just the way I'm going to buy going forward."
What's surprising for me is, for some big deals, it's not about money. It's not about five-year ROI. These cloud deals a lot of times are more expensive. A lot of these times these cloud deals are more expensive on a five-year total cost of ownership.
Why are they paying more?
JG: They're still [doing it] because it's easier and it [relates] to speed. You don't want to buy a piece of hardware that three years from now someone says, "I'll throw it in the garbage because that's not the latest and greatest thing anymore versus being in the cloud." But they're paying a big premium to get there.