Page 70 - How to Sell Cloud Services for Resellers - HSCR

Capex vs Opex :

Improving the Financial Model

Traditional On-Premise Model - Capex: Cloud Model - Opex:

3 Total 3 Year 0 Year 1 Year 2 Year 3 Total
2.5 2.5 -0.2 -0.2 -0.2 -0.3 -0.9
0 0.4 0.7 1.3 2.4
2 2
1.5 1.5

1 1
0.5 0.5

0 0
-0.5 -0.5

-1 -1
-1.5 -1.5

-2 -2

Year 0 Year 1 Year 2 Year 3 Cashflow Out
Cashflow In
Cashflow Out -1.2 -0.1 -0.1 -0.1 -1.5

Cashflow In 0 0.4 0.7 1.3 2.4

• Supplier takes majority of revenue up front • Supplier takes risk, and works on
• Customer carries risk of investment
future revenue streams
• Customer gets benefits without

risking capital