Profitable Subscription Business Models

Posted by Thomas Lah on 10/11/17 5:00 AM

In the first installment of my three-part series of articles about how the new subscription-based economy is affecting traditional technology companies, I talked about how product and service revenues are beginning to shrink across the industry. In this second installment, I'll be sharing what it means to embrace as-a-service offers in a tech business model and how that can lead to future profitability. 

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Topics: XaaS (x-as-a-service), cloud, SaaS (software-as-a-service), cloud computing, technology-as-a-service, subscriptions

3 Ways to Lead Your Company to Success in the Cloud

Posted by J.B. Wood on 10/4/17 8:30 AM

The Cloud. It's where cool tech ideas get funded by eager venture capitalists and mega fortunes are made when the next big thing goes viral. For all of the excitement and hype surrounding the Cloud, there are some sobering realities that tend to get swept under the rug: namely the fact that, on the whole, the cloud business model is not a profitable one. Surprised?

Yes, cloud companies (such as software-as-a-service and technology-as-a-service, just to name a few) are all the rage, and rightly so, for they are the future of tech. They regularly enjoy double- or triple-digit growth rates and garner enviable media coverage and razzle-dazzle headlines. But the mostly unspoken truth is that they are underpinned by unproven financial fundamentals that, frankly, wouldn't be allowed to persist in any other industry.

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Topics: XaaS (x-as-a-service), big data, cloud, subscription-based offers, SaaS (software-as-a-service), Technology-as-a-Service Playbook, digital transformation

Welcome New TSIA Members! September Edition

Posted by Andrew Cromey on 9/20/17 5:00 AM

At TSIA, we are dedicated to helping services organizations both large and small grow and advance in the technology industry. We'd like to take the opportunity to welcome our newest members, as well as acknowledge companies already a part of the TSIA community who have recently expanded their membership to include additional research areas TSIA has to offer. Here's a little bit about each company, in their own words.

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Topics: cloud, professional services, professional services automation (PSA), SaaS (software-as-a-service), New TSIA Members, cloud computing, IT, healthcare technology

The Digital Transformation Journey: Supplier Keys to Success in Subscription Business Models

Posted by J.B. Wood on 9/7/17 5:00 AM

Successfully transitioning your business model from “CapEx,” where customers pay up front for your solution, to an “OpEx” or subscription model where your customers pay over time and your revenue becomes ratable is not easy. And, it’s not just the transition in your revenue model that’s difficult­—it’s also not simple to generate GaaP profits once you have substantially pivoted. That was the point of the last post in "The Digital Transformation Journey" series. But fortunately, with so many hardware, software, industrial and medical equipment suppliers playing today in the subscription business model, some best practices are emerging. 

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Topics: XaaS (x-as-a-service), subscription-based offers, SaaS (software-as-a-service), recurring revenues, digital transformation, The Digital Transformation Journey, subscriptions

Welcome New TSIA Members! August Edition

Posted by Andrew Cromey on 8/22/17 5:00 AM

At TSIA, we are dedicated to helping services organizations both large and small grow and advance in the technology industry. We'd like to take the opportunity to welcome our newest members, as well as acknowledge companies already a part of the TSIA community who have recently expanded their membership to include additional research areas TSIA has to offer. Here's a little bit about each company, in their own words.

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Topics: cloud, professional services, customer relationship management (CRM), SaaS (software-as-a-service), New TSIA Members, cloud computing, IT, human resources

Welcome New TSIA Members! July Edition

Posted by Andrew Cromey on 7/31/17 5:00 AM

At TSIA, we are dedicated to helping services organizations both large and small grow and advance in the technology industry. We'd like to take the opportunity to welcome our newest members, as well as acknowledge companies already a part of the TSIA community who have recently expanded their membership to include additional research areas TSIA has to offer. Here's a little bit about each company, in their own words.

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Topics: cloud, professional services, customer relationship management (CRM), healthcare, SaaS (software-as-a-service), New TSIA Members, cloud computing, IT, healthcare technology

The Digital Transformation Journey: Customer Use Cases

Posted by J.B. Wood on 6/15/17 5:00 AM

Every once in a while, a perfect storm hits a market. Usually it’s when a new trend or concept appeals simultaneously to both customers and suppliers. When that serendipity strikes, even long-standing models are forever transformed. That is what’s going on today in tech sectors, from IT, to industrial equipment, to transportation, to healthcare. Subscription-based offers are eating their old transaction-based siblings at a breathtaking rate.

In my infographic, “Navigating the Digital Transformation Journey,” I outlined 6 key steps to thriving in this changing market. Today, I’m going to talk about the most fundamental underpinning of the new subscription economy and the first step on this journey, “Customer Use Cases,” or in other words, why customers love it!

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Topics: customer success, XaaS (x-as-a-service), customer outcomes, customer churn, SaaS (software-as-a-service), outcomes, digital transformation, The Digital Transformation Journey, technology-as-a-service, subscriptions

Welcome New TSIA Members! March Edition

Posted by Andrew Cromey on 3/30/17 5:00 AM

At TSIA, we are dedicated to helping services organizations both large and small grow and advance in the technology industry. We'd like to take the opportunity to welcome our newest members, as well as acknowledge companies already a part of the TSIA community who have recently expanded their membership to include additional service disciplines TSIA has to offer. Here's a little bit about each company, in their own words.

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Topics: XaaS (x-as-a-service), cloud, SaaS (software-as-a-service), New TSIA Members, software, telecommunications, information technology (IT)

Welcome New TSIA Members! February Edition

Posted by Technology Services Industry Association on 2/24/17 5:00 AM

At TSIA, we are dedicated to helping services organizations both large and small grow and advance in the technology industry. We'd like to take the opportunity to welcome our newest members, as well as acknowledge companies already a part of the TSIA community who have recently expanded their membership to include additional service disciplines TSIA has to offer. Here's a little bit about each company, in their own words.

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Topics: XaaS (x-as-a-service), cloud, healthcare, SaaS (software-as-a-service), New TSIA Members, software

Welcome New TSIA Members! January Edition

Posted by Technology Services Industry Association on 1/30/17 11:16 AM

At TSIA, we are dedicated to helping services organizations both large and small grow and advance in the technology industry. We'd like to take the opportunity to welcome our newest members, as well as acknowledge companies already a part of the TSIA community who have recently expanded their membership to include additional service disciplines TSIA has to offer. Here's a little bit about each company, in their own words.

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Topics: big data, cloud, services, healthcare, SaaS (software-as-a-service), New TSIA Members, hardware manufacturers, analytics, biotech

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