Changing Engagement Models

Posted by Thomas Lah on 11/28/17 5:00 AM

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.

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Topics: XaaS (x-as-a-service), cloud, customer adoption, customer outcomes, expand selling, LAER, PIMO, cloud computing, Technology and the Subscription Economy

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 Terror Facing Tech

Posted by Thomas Lah on 5/23/17 5:00 AM

I recently contributed the first of a three-part series of articles to Business View Magazine about how the new subscription-based economy is affecting traditional technology companies. In my first article, "The Terror Facing Tech," I discuss how both the product revenues and even service revenues for many well-established traditional technology suppliers are beginning to shrink. In response, they’re making the pivot toward the new as-a-service business models, yet are struggling to achieve profitability. So, what can they do to bridge this gap? Here is an excerpt of the article, which you can read in full online on Business View Magazine's site.

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Topics: XaaS (x-as-a-service), cloud, cloud computing, Technology and the Subscription Economy

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