Peter Wolf: How to Build Services-as-a-Service
There’s a lot of talk about moving from traditional on-premise selling to the as-a-service model. This remains a big challenge for traditional vendors and partners alike. I’ve always thought of this as shifting the sale of technology (software and hardware) from a big upfront sale to a much smaller recurring revenue stream. But as I learned in this conversation with Peter Wolf, founder of Azamba Consulting Group, partners also have a huge opportunity to shift from fixed time and materials service contracts to selling services-as-a-service. Listen to Peter as he shares the challenges and benefits of transforming his CRM services business to the subscription as-a-service model.
KEY TAKEAWAYSPeter shared some great tips for partners looking to make this transformation. Here are my favorites:
- While transitioning to a subscription services model, keep your old business fixed price model going to help soften the cash flow impact of adjusting to recurring revenue.
- Aligning your services pricing to your vendors’ subscription pricing that your customers understand will be well received.
- Today’s customers are very demanding. If you’re not serving them the way they want around their results, they will find someone who can.
- In this new customer experience economy, you need to provide a consistent high quality services experience.
- Charge a small up-front fee to prove customer commitment and continue adding more value to your service packages.
It's easier for a customer to understand my subscription services model when they're buying the software the same way. @CRMWolf
Click To Tweet
Today's customers are very demanding. If you're not serving them the way they want around their results, they will find someone who can. @CRMWolf
Click To Tweet
Where all this transformation is coming from is not a desire for vendors or people like myself to shift. It's because the customers are leading us on this journey. @CRMWolf
Click To Tweet
- Find Peter on LinkedIn and Twitter
- Learn more about the new TSIA XaaS Channel Optimization practice
- Get a copy of the Technology-as-a-Service Playbook and other TSIA books
- Get a 10% discount at the Channel Institute
