Datacentre storage is shifting from capex refresh cycles to opex consumption models. Explore pros, cons, and vendor offerings from Dell, IBM, HPE, NetApp, Pure Storage and more

Storage consumption models: From pay-as-you-go to buy-with-upgrades

For decades, storage was one of the most rigid components of the datacentre. Companies deployed large arrays through forklift upgrades on multi-year refresh cycles, only to see those systems quickly lose performance, flexibility, and ease of management.

The rise of the cloud flipped that model on its head. Suddenly, organisations could access storage on a pay-as-you-go basis, scale as needed, and let someone else handle upgrades and maintenance. That shift has reshaped how vendors sell storage and how customers expect to consume it.

This article explores the different storage consumption models, their pros and cons, and what today’s vendors offer.

What is the traditional storage refresh cycle?

In the traditional model, storage was refreshed every three to five years. Customers bought hardware outright (a capital expense), installed it in their datacentre, and owned it for the life of the equipment. Vendors provided software, support, and patching, but risk and maintenance ultimately fell on the customer.

Benefits included:

A clean slate of new hardware every few years.
Immediate performance boosts after installation.
Better efficiency, energy savings, and new integrations (such as cloud connectivity).

However, these benefits came with significant drawbacks. As hardware aged, performance degraded, software piled on patches, and reliability dropped. By year three, systems often struggled to keep up with modern workloads. Migrating to the next refresh cycle meant disruption, downtime, and a costly forklift upgrade.

What are the key challenges of traditional storage procurement?

While shiny at first, traditional arrays often became complex and fragile over time:

Data growth outpaced controller power, leading to slowdowns.
Older hardware couldn’t keep up with new applications.
Frequent outages and performance degradation were common.
Upgrades were disruptive and required long migrations.

Perhaps most importantly, ownership shifted risk from the vendor to the customer. If systems went down, the vendor might offer support, but it was ultimately the customer’s problem.

What’s the difference between capex and opex in IT?

The debate over capex (capital expenditure) vs. opex (operational expenditure) is central to storage procurement:

Capex: A one-time investment in physical assets. Ownership transfers to the customer, who can depreciate the cost over time.
Opex: Ongoing operating costs, such as cloud services. These are tax-deductible in the year they occur and tie spending directly to usage.

Cloud consumption models made opex the new normal. Instead of buying hardware, companies now rent storage capacity as needed, turning storage into a service.

What is the cloud operating model for storage?

The cloud operating model is built on consumption rather than ownership. Instead of forklift upgrades every few years, customers pay for what they use, while vendors manage ongoing upgrades, expansions, and monitoring.

Key benefits include:

No more disruptive refresh cycles.
Always-on access to the latest hardware.
Scaling capacity and performance on demand.
Predictable costs aligned to actual usage.
Less in-house maintenance required.

For many, the cloud model has made as-a-service storage more attractive than capex procurement.

What are the downsides of storage-as-a-service?

While opex-based consumption brings agility, it also introduces new challenges:

Loss of control: Customers rely on the vendor for updates, monitoring, and even compliance.
Vendor lock-in: Once tied to a provider, switching can be difficult.
Security concerns: Some organisations, particularly in regulated industries, worry about compliance gaps when vendors control infrastructure.

Ultimately, success depends on strong vendor relationships. Customers must actively manage service levels, performance, and contracts to avoid hidden risks.

What consumption models do vendors now offer?

Storage vendors now offer a spectrum of models, from outright purchase to fully managed services. Customers can choose based on budget, risk appetite, and workload needs.

Here are the leading vendor offerings:

Dell Apex Flex on Demand

Lets customers commit to a base and buffer capacity.
Offers block, file, object, and data protection appliances.
Usage is tracked via the APEX Console, with month-to-month flexibility after the term.
Available systems: PowerStore, PowerMax, PowerFlex, PowerScale, ECS, and PowerProtect.

HPE GreenLake

A full as-a-service platform that includes storage and broader datacentre services.
Provides block, file, and object storage, including Primera, Nimble, SimpliVity, and StoreOnce.
Subscription-based, with lifecycle management handled by HPE.
Integrates with composable infrastructure and HPE Pointnext services.

Hitachi Vantara EverFlex

Offers both capex and opex models.
EverFlex provides storage-as-a-service with pay-per-use billing.
Customers can choose self-managed or vendor-managed options.

IBM Storage as a Service & Storage Utility

Based on FlashSystem and DS8900F arrays.
Provides pre-installed excess capacity (50–200%) to meet sudden growth.
Pay-per-use billing ensures customers only pay for what they consume.
Managed with IBM Storage Insights.

NetApp Keystone

Flexible options: outright purchase, pay-as-you-go, or usage-based billing.
Service levels range from general to premium performance tiers.
Keystone integrates with NetApp’s Active IQ and BlueXP for hybrid cloud visibility.

Pure Storage Evergreen Portfolio

Evergreen//Forever: Buy hardware once, get lifetime upgrades.
Evergreen//Flex: Own hardware, but scale capacity on demand.
Evergreen//One: Unified subscription for block, file, and object across on-prem and cloud.
Managed through the Pure1 dashboard for single-pane visibility.

Which model is right for your organisation?

Choosing between capex and opex often depends on:

Workload predictability: Stable workloads may suit capex, while fluctuating needs fit opex.
Budget preferences: Some CFOs prefer predictable opex, others like depreciating capex assets.
Compliance and control: Highly regulated industries may lean toward owned infrastructure.
Strategic goals: Companies embracing hybrid or multi-cloud often prefer flexible, consumption-based models.

The takeaway

Storage is no longer confined to rigid three-year refresh cycles. Organisations can now choose from a spectrum of consumption models, from traditional capex to fully managed, cloud-like subscriptions.

Capex offers control and ownership but risks obsolescence and disruption.
Opex provides agility, scalability, and reduced maintenance but introduces concerns over control and vendor lock-in.
Leading vendors like Dell, HPE, IBM, NetApp, Hitachi Vantara, and Pure Storage all now offer flexible options to match workloads and budgets.

For most, the future is hybrid: a mix of capex and opex models that balance stability with innovation, ownership with agility.

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