CEO Michael Dell said that services companies are starting to realized the public cloud is too expensive.<\/b>
\nDell is launching a pay-as-you-go model for its cloud services business as an alternative to the offerings of rivals Amazon, Microsoft and Google, CEO Michael Dell told CNBC on Monday.
The change in pay model was \u00ab\u00a0a natural evolution, \u00a0\u00bb he said.
\u00ab\u00a0We’ve been gradually embracing this for some time, but we talk about this as consumption models. So, pay-as-you-grow, pay-as-you-use, pay-per-use \u2013 and we’re absolutely embracing that. It’s what our customers are asking us to do, and we’re happy to do it, \u00a0\u00bb said Dell.
Dell said leading software as services companies are starting to realize the public cloud is too expensive, which has led companies like Dropbox to pull out. \u00ab\u00a0Because the operating costs of the infrastructure itself is too large of a cost relative to their overall P&L, \u00a0\u00bb he said.
\u00ab\u00a0We’ve seen a bit of a boomerang effect where, you know, customers have run to the public cloud and say, ‘Hey wait a second, this is more expensive, ‘\u00a0\u00bb said Dell.
In an interview with CNBC, Dell also said this new offering would be good for Snap \u2014 which is a large user of cloud services, and reports earnings for the first time this week.
\u00ab\u00a0I guarantee you we can save them some money, \u00a0\u00bb he said.<\/p>\n

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