Hewlett Packard Enterprise (HPE) and Wipro teamed up to offer consumption-based IT, providing on-premises IT infrastructure with a pay-per-use model.

The deal combines HPE’s Flexible Capacity and Wipro’s infrastructure-as-a-service (IaaS). Flexible Capacity is HPE’s pay-per-use IT infrastructure service.

UK-based insurance group RSA is a customer.

The new service gives customers public cloud benefits in their own data centers, said Olivier Suinat, senior vice president, global sales at HPE.

“What we see in the marketplace is rapid acceleration of demand for a consumption-based model,” Suinat said. “HPE’s Flexible Capacity achieves cloud economy on-prem. You can scale capacity very quickly when you need it, and you only pay when you use it.”

The go-to-market agreement builds on HPE and Wipro’s 20-year partnership. It also reflects enterprises’ expectation of public cloud benefits — like agility and scalability — and the need to keep some workloads on premises because of security and compliance needs, Suinat said.

He also hinted at expanding the partnership with Wipro in the future.

“I have no doubt that the partnership with Wipro leveraging flexible capacity around infrastructure-as-a-service will continue to grow.”

It also reflects the growing demand for as-a-service models — for everything from database-as-a-service to security-as-a-service and infrastructure-as-a-service.

The global everything-as-a-service, or XaaS, market will grow at compounded annual growth rate of nearly 40 percent from 2016 to 2020, according to a market research report from RNR.