The coveted “recurring revenue”. It’s not a new concept, but after the year we had in 2020 it is something many businesses had wished they had more of. It is the system integrators who had taken the time to build their recurring revenue streams who were able to weather the pandemic storm a lot more gracefully than those without it.
Knowing now just how fast things can change and the economy can take a tumble, there is no time like the present to begin shifting efforts and make building recurring revenue a key priority. Even if the economy is strong, what business would not want the safety net of stable, predictable income along with a high customer lifetime value (CLV)?
Traditionally, solution integrators sell technology equipment and services. You close a sale, they pay cash, and on you go to the next customer. This is how it has been done for decades. However, the market is proving that this sales model, unfortunately, is becoming antiquated and it is not a healthy sustainable business model for growth and success. In fact, 2020 proved that relying solely on one-time project-based revenue as your only sources of revenue can make you vulnerable.
Enter "X as-a-Service." It's not new and it is not a phase. Today, we are living in the subscription economy. X as-a-Service has caught on fire for all of the right reasons. There has never been a better time to adapt the way you've always done things and adopt an as-a-service payment model to offer to customers.
How Does Technology As A Service Model Help:
- Bundling Maintenance - An as a service or subscription-type payment model offers a total solution as a monthly payment. This way to pay makes it easier for you to bundle in to capture margin rich services such as multiyear support and maintenance, at the point of sale.
- Capture Network - Ability to secure related recurring revenue such as network services.
- Differentiation -Compelling value-add to your solution versus your competitors. Adapting and adopting this now will also put you miles ahead of competition.
- Aligning with Marketplace -Whether you choose to align or not both businesses and consumers are shifting to this buying preference. Stay aware of the marketplace direction and today's customer expectations. The as a service demand has never been higher. And now with many organizations resorting to capital preservation, bundling your offering as a monthly payment helps customers preserve cash flow while you continue to close sales.
What to Look For In An Equipment As A Service Payment Model
Align with a technology as a service solution that meets the needs of your modern customer. Look to a solution that addresses the needs of today's constantly changing business operation. They need things like the ability to scale, greater control, and protection against technology obsolescence. Obsolescence protection is more important than ever. With today's rapid advancement in the technology sector, equipment becomes obsolete, no longer meeting the needs of the customer, much faster than ever before. The effect from operating with outdated technology is damaging to a businesses bottom line. It can bottleneck their growth and restrict them from being competitive and agile in the market.
Gone are the days when a business can keep a solution for 10 years and remain competitive or grow efficiently. For example, if a company is using antiquated security equipment how does that affect the protection and value of their assets? Or, how can a business expect to grow if their audiovisual technology is from 2015? It can become a major hindrance. A business must continue to lean into technology advancements to fit it's needs and maintain its competitiveness. The technology leaders of the world spend billions on R&D specifically for these purposes.
Ready to Adopt Hardware as a Service, But Not Sure How to Start?
TAMCO has been partnering with technology solution providers for over 27 years, helping system integrators, solution resellers, manufacturers, and more offer progressive and exclusive ways to pay for technology equipment that offers the freedom, flexibility, and peace of mind businesses desire.
Learn about Shield, the exclusive technology equipment as a service payment option that is unmatched in the marketplace.
To learn more about how to capitalize on offering this equipment as a service option and build recurring revenue for your technology solution sales business. This eBook walks you through how partnering with TAMCO provides you with a value-adding equipment as a service procurement method, helps you build recurring revenue, and increase your customer loyalty.