How the Shift to as-a-Service Business Model Results in New Revenue Streams
The “as-a-service” economy - including subscriptions, cloud technology, and the Internet of Things, have caused a great transformation in customer expectations. Clients look for solutions that offer both products and services that are affordable, convenient, and scalable. Manufacturers with this model can make the most of their inventory and reduce their SKUs while generating higher revenue from the technologies they offer, without requiring clients a high initial investment. Meanwhile, channel partners can give extra value to users based on their requirements or product usage, thus giving customers more control over their technology investments. Providing channel partners with built-in as-a-service capabilities lets them broaden their end-user service offerings and supply additional managed services, increasing their margins. Shifting to as-a-service business models allows manufacturers, channel partners, and their end-users to gain the maximum value out of their products.