What is capacity on request?
Capacity on request is a concept of modern IT provider service regulations that enable buyers to purchase only part of the capacity delivered depending on usage. This structure is quickly becoming one of the most popular delivery models for many types of enterprise IT services.
The idea with capacity on demand is that companies have the option to buy part of a service in advance and buy the rest later when they need it.
These types of purchasing agreements can be provided with hardware or network architectures or digital services. For example, if a company only needed half the bandwidth of a provided offering, it would pay half, with a clause in the contract that would price the remaining half if necessary.
Experts point out that many of the attractive cloud computing bending options have relatively high capacity when needed. Multi-tenant cloud systems often contain a large amount of capacity that clients share.
When a company has to drop a volume of services, it does so without long back and forth or logistics. While capacity on demand has become a popular model, some critics claim that depending on the contract, it can result in companies paying more for services if they don't plan well.
If the company gets a good price for the amount of services they use, this can be an efficient model. However, if it takes advantage of instant upgrades at higher prices, the end result may not be economical in the long run.
Much of the practicality of on-demand capacity depends on a careful reading of the agreement or contract between the seller and the buyer.
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