In the first article of this series, I made the statement, “Selling technology is becoming a low-growth, low-margin endeavor,” and presented data to back up this sobering statement. In addition, we reviewed the fact that born-in-the-cloud computing companies are enjoying double-digit revenue growth, but they are struggling to be profitable.
So, how do technology companies get back on the track of profitable growth? TSIA’s prescription:
“Embrace as-a-service offers (this is where the revenue is going) that are anchored on business outcomes (not feature functionality, which is commoditizing) and supported by a customer engagement model that cost-effectively drives the adoption, expansion, and renewal of your offers (this is where most tech companies are failing).”
In this final article in my three-part series, we will explore how customer engagement models will need to evolve to better support subscription business models.