CSP – The Benefits

Hi All,

So we’ve all heard the term CSP floating around recently and a lot of us don’t know what it actually means and let alone what benefits we could get from it.

CSP in conclusion stands for Cloud Solution Provider and is a new licensing model that Microsoft have developed; it is aimed at helping organisations to drive cost efficiencies across their licensing environments. This can be done through using an opex model compared to a capex model.

Now like me, if when you first read the terms capex and opex you were completely at a loss – stay with me – for I can explain what these mean and how this may help you drive efficiency.

  • Capex stands for capital expenditure and is where you are creating future benefits for your business, such as buying fixed assets like buildings or equipment etc. You may also be adding value to existing assets such as upgrading the latest machinery to perform better.
  • Opex stands for operational expenditure and this refers to money used in the normal business day-to-day stuff, like wages or utilities.

So CSP. Where does this come in?

Through our experience we have estimated that over 75% of customers overspend on their licensing and have no real control or governance over their utilisation.

As an example we worked with a international facilities management company and reduced expenditure from £1.1 million to £500k per annum. Now does that sound like the sort of savings you would be interested in?

But of course, you may already have a licensing provider – or be using something called an EA (enterprise agreement). If that’s right then let’s dig into that too.

With your EA provider take a moment to look at the questions below and answer them to yourself:

  • Do you feel you’re getting value out of the agreement?
  • How are you tracking utilisation and optimisation?
  • When does your EA expire? Would you be open to trying a more efficient license?

Get in touch.

Thanks for reading.

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