Aug 1, 2018 5:28:00 PM by: Jill Duran

Have you heard the term “recurring revenue”? It’s not new, but it is what all of the big players in the premise and hosted technology equipment industry want. 

See what four of the biggest players in this industry are saying: 

- ShoreTel– Customers now focus on "total cost of operations instead of total cost of ownership.”

- Cisco ”Having businesses based on recurring revenues gives companies and analysts better visibility on future revenues.”

- Mitel– Companies are looking for collaboration solutions that allow them to “flexibly manage their cost structure.”

- Avaya- "Ongoing customer preference for OpEx-based procurement approaches … Avaya to help them move away from CapEx-based procurement approaches.”

The one and done sale is becoming outdated.  So, how do you keep up and play in this space using the traditional box sale you’ve always known? You have to adapt and learn the products that will move with them. Adopting a technology equipment as a service payment models can give customers more flexbility, control, and protection. The as a service payment model is an operating expense (OPEX), therefore you can receive preferrential accounting treatment.  Benefits for the technology solution provider include: 

  1. Aligning with Marketplace -Payment option that is aligned with the marketplace direction and today's customer expectations.
  2. Bundle Maintenance -Means to bundle and capture margin rich services such as multiyear support and maintenance.
  3. Capture Network -Ability to secure related recurring revenue such as network services.
  4. Differentiation -Compelling value-add to your solution versus your competitors.

OPEX procurement methods are on the rise and in demand. Stay ahead of the competition by adding it to your arsenal of sales tactics to win more transactions and gain more recurring revenue.

Learn more about how you can build recurring revenue. Download this ebook about building recurring revenue use TAMCO's partner program for technology solution sales. 

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OpEx / recurring revenue

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