What Is Capacity On Demand (COD)?
Capacity On Demand (COD) is the future of IT, and it's here to stay. Using this structure, a purchaser can purchase just the quantity of IT services they require. This structure is becoming one of the most popular delivery methods for enterprise IT services in modern IT vendor services provisions. The benefits are simple: if you don't need as much capacity as you thought you might have to use, you don't have to buy all of it upfront. If you need more capacity than anticipated, you can quickly scale up without paying for additional hardware or software licenses. If your company doesn't grow as fast as expected, there's no need to pay for unnecessary resources—you can just downgrade your service plan without extra time or money. You can buy the first half of a service or product upfront and pay for the remaining half later with COD. It's like buying a car by paying for half of it upfront, then having to pay for the other half when it arrives. Except with COD, you're also paying for half of something that doesn't exist yet. So imagine this: You've been planning your dream wedding for months and months—you've got the venue booked, and everything is set up perfectly. And then, suddenly, one week before the wedding, your fiancé comes to you and says, "Hey, I'm not sure if I want to go through with this. " And then they leave. What do you do? You could tell them they have to go through with it because they already signed a contract promising their presence at this event! But what if they were never really interested in going through with it in the first place? What if they just wanted an excuse not to show up? That's where COD comes in: You can buy part of the service upfront and pay for the rest later.
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