LAER Explained: A New Customer Engagement Model for a New Business Era

Posted by Thomas Lah on 10/17/17 9:14 AM

The act of selling technology has undergone a radical change. Purchases are no longer the large up-front investments they once were, but are instead made up of lower cost subscriptions and value-add services. As a result, the features and function of the technology are now less important when compared to the business outcome achieved by using the technology. In this new era of technology-as-a-service (XaaS), the ability to successfully deliver customer outcomes, keep customers on your platform, and get them to spend more money over time will be what determines your company’s profitability and success. 

In order to thrive in this changing marketplace, TSIA believes that today’s technology providers need to shift their focus from selling more assets to growing customers successfully. To aid in this transition, TSIA has developed the supplier view of a customer engagement model called LAER (pronounced “layer”). While we have discussed this in blogs, TSW conferences, and the new Technology-as-a-Service Playbook, here are the basics of LAER explained and its impact to the customer-supplier relationship.

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Topics: XaaS (x-as-a-service), customer-supplier relationship, customer adoption, customer outcomes, expand selling, LAER, customer engagement, Technology-as-a-Service Playbook

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

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

The Digital Transformation Journey: Growing Customers Successfully

Posted by J.B. Wood on 9/21/17 5:00 AM

Pivoting your company’s portfolio to subscription-based, recurring revenue offers, either in whole or in part, is a two-step intellectual journey for senior executives. The first step is deciding if customer demand is changing sufficiently enough to warrant making all the changes and facing all the challenges of effectively moving to XaaS offers. The previous five blogs have focused on that decision-making journey. Once you have made that decision, with all its myriad implications, you are ready for the second major step: What changes do I make in my go-to-market (GTM) model? That is the focus of our final blog in "The Digital Transformation Journey" series.

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Topics: customer success, XaaS (x-as-a-service), sales, LAER, customer success manager, recurring revenues, digital transformation, The Digital Transformation Journey

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

Learn TSIA Insights at These Upcoming Industry Events

Posted by Tom Anderson on 9/6/17 5:00 AM

Whenever a new trend emerges in the world of technology and services, TSIA is already active in developing new research, frameworks, and expertise around what that trend can mean for your business and the future of our industry. To share their latest findings in the areas of support services, expand selling, sales, marketing, improving customer journey, and creating profitable subscription offers, TSIA executives will be presenting at several upcoming conferences and speaking engagements, including: TSIA International Support Services Summit, Marketing Loves Sales, Technology Services World, and ProductNEXT. 

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Topics: XaaS (x-as-a-service), support services, sales, expand selling, summit, marketing, products, product leader

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

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

How Field Services is Transitioning to the As-A-Service Model

Posted by Vele Galovski on 4/19/17 5:00 AM

At TSIA, we receive a steady stream of inquiries from our members, which give us insight into the most pressing business challenges technology companies are facing across the industry. We then translate these challenges into a list of capabilities organizations will need to embrace in order to succeed in the coming years. One of these key capabilities is something that has become so prevalent across the industry that we've dedicated an entire blog series to it: organizational alignment and convergence.

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Topics: XaaS (x-as-a-service), field services, industrial equipment, TSIA Organizational Convergence Series, services convergence, organizational convergence

Use Indirect Channels to Build, Grow, and Maintain Profitable XaaS Revenue Streams

Posted by Jim Stockwell on 4/4/17 5:00 AM

Generating a profit is the goal of every cloud business. Yet for many, achieving it remains elusive. As companies walk the path toward creating a profitable cloud-based business—or transitioning from a product-based to a service-based business—many challenges exist in this still-emerging market. And those challenges are amplified when operating through an indirect channel sales model.

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Topics: XaaS (x-as-a-service), channel partners, indirect channels

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