[Video Transcript]
Under the TAMCO Technology-As-A-Service program, integrators are encouraged to bundle in their maintenance, support, and other services of value to the customer for the full subscription term in order to create a very comprehensive solution. However, most integrators are used to cash sales and it is rare for them to sell multiyear service agreements when a customer makes an upfront cash purchase. So integrators that are new to selling as-a-service solutions will often ask us “How are we paid for our bundled services?” in an as-a-service solution sale.
Let’s use a transaction example to explain exactly how integrators are paid for technology-as-a-service sales.
Assume an integrator sells a technology-as-a-service solution that includes a $50,000 technology system along with a $21,000 five-year maintenance and support contract. With the TAMCO Technology-As-A-Service program, the integrator will be able to sell the solution for a payment of about $1,400 per month and the money flow will look like the following:
As TAMCO's integrator partners become familiar with these details, they are delighted to experience how the TAMCO Technology-As-A-Service program makes it so much easier to get customer commitment for their multiyear service agreements. Ultimately, integrators benefit from the usual upfront revenue, the addition of recurring revenue, and a more engaged, longer-term customer relationship.