On-demand storage contracts are agreements with suppliers to install storage capacity in anticipation of use but not charge until the usage actually occurs. The charge will occur at rates consistent with the time of use and not the time of install. Suppliers will often offer this type of arrangement in exchange for preferred status as one of the top two suppliers at the customer. The tradeoff is fewer suppliers and less supplier flexibility, although many customers are trying to reduce the number of vendors.

This approach is a good first step in providing service models comparable to consumer-oriented suppliers.