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, Technology and the Subscription Economy

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

The Digital Transformation Journey: Customer Concerns About Subscriptions

Posted by J.B. Wood on 6/29/17 5:00 AM

In my infographic, “Navigating the World of Digital Transformation,” I outlined 6 key steps to thriving in today’s rapidly changing tech market. In my first blog of this series, I covered the many attractive aspects to customers of consuming enterprise technology on an “as-a-service” (subscription) basis. Today, I’m going to talk about the flip side of the coin—why some customers might object to the concept.

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Topics: cloud, managed services, subscription-based offers, recurring revenues, digital transformation, IT, The Digital Transformation Journey, subscriptions, security

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

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