Pay-per-use model is a true innovation of the subscription model. It decreases the entry cost of IAM to 1/10X. The total cost of ownership is reduced to 1/3X and the Return of Investment becomes 3X.
Let us take a look at the top 10 benefits of the PPU model.
1. Extremely low entry and exit costs:
One invests or spends 1/20th of any other solution. Access to the solution includes hosting, live support, and access to the ‘support hub’ that contains everything one needs to have to implement the solution. Should one not like to use the solution the exit cost is also as small.
2. The entry cost can be even lower if purchased as modules:
The solution is available in two modules: Access Management (AM), and Identity Governance and Administration (IGA). If one intends to begin with one module, that too is possible. It further reduces the initial cost, literally to a few hundred dollars per month.
3. Gradual build-up of cost, as you consume:
Organizations take time to implement IAM solutions and extend the entire user base. Since the variable cost is based on consumption, it is directly proportional to the extent of implementation and usage, not the number of users that have the right to use.
4. One can implement by complete services, not features:
Compact Identity offers the choice to implement by services; Access Certification, SSO, Password Reset, Provisioning and Deprovisioning users, Access Request, and so on. The solution can be implemented based on one’s priorities. The variable cost will always be in line with your priorities.
5. Payments are based on the extent of utilization of IAM services by a user:
In a classic subscription model, every user is charged the same. This is unfair as usage can vary 1:10 based on the type of the user. In the PPU model, the payments are automatically adjusted for heavy and light users.
6. IT can cross-charge IAM services to departments/cost of profit centers:
In a classic model, one has no idea how to cross charge the cost to departments or cost centers. IT departments struggle to justify the cost of IAM as it is one big monolithic number. In the PPU model, one knows precisely how much is being consumed by different centers, right down to every user.
One can also see the consumption trend, providing vital clues to where attention is needed.
7. Control ever-increasing subscription costs:
Software costs are now a major expense for organizations. While subscription charges per user may appear to be small at the first look, once added up they become a huge cost every year. While expensive software utilization tracking tools are available to provide cost analysis, they cost 3-5$/user per month.
Compact Identity PPU provides visibility into the cost of all software in the enterprise. It functions just like a software utilization tool and costs nothing extra. One can analyze the cost of each software by department, business unit, or user. Trends are also visible, as well as the knowledge of which users are not using their subscriptions adequately. All this can be used to substantially reduce the cost of software in the enterprise.
8. Pay after usage, not before:
Traditional subscription models make one pay much before actual use. Compact Identity’s PPU model enables you to pay after using it every month. This reduces the cash flow burden substantially.
9. Accurate budget planning:
PPU provides usage for desired periods, making it possible to predict trends by the department. This is useful in planning the IAM budget for the next year. It can be built in a decentralized way, by department and cost centre. In fact, this can be done for all software used by the organization. Due to the data-based budget demand, CFOs have no more reason to argue and arbitrarily cut budgets.
10. Much lower TCO:
The five year TCO of Compact Identity PPU is less than 1/3rd of any other vendor. The ROI of the PPU model is 500-1000% per year!
You can use the PPU ROI calculator to see for yourself.