Many integrators still think of “as-a-service” as buzz words, a fad, or a way of selling technology solutions that will have little impact on their business. Hopefully, they will reconsider before it is too late because as-a-service/subscription solutions are all around us and their appeal continues to grow.
Consumers and business customers have already used these solutions for a long time. We are all familiar with Netflix, Amazon Prime, and Microsoft Office 365. Extending this type of subscription service to the hardware-intensive technology solutions that integrators sell, is just a logical progression that customers find attractive.
Your competitors know this and they are changing the way they sell. For example, from SCN’s most recent list of 50 Top AV integrators, 42% are already promoting AV-as-a-service and other technology-as-a-service offerings. That’s a 50% increase from a year ago.
Similarly, from SDM’s list of Top Physical Security Integrators, you will find key players like ADT Commercial, Corbett Technology Solutions, Kastle Systems, and Unlimited Technology offering security-as-a-service solutions with success.
In fact, the growing interest and adoption of as-a-service solutions are reported in just about any technology or business publication you pick up. And it is not isolated to technology solutions. Earlier this year Taco Bell announced you can buy a taco subscription on a monthly basis, it feels pretty safe to say the global economy has embraced the subscription sales format.
But keeping to technology solutions, in particular, I think integrators need to really pay attention to a point made by Johnson Controls. They stated that "for technology integrator solutions, the early phase of adoption is over. Technology-as-a-service solutions have crossed over into customer mainstream adoption."
If you really want to get a feel for the power of this checkout, Enterprise IT as a service Deloitte insights.
They conducted a study that estimates the global XaaS market in 2018 was worth 93.8 Billion in US Dollars and forecast a compound annual growth rate of 24%, predicting the market will surpass 340 Billion in US dollars by 2024. This is a must-read with compelling data and information about this shift.
Build your MRR, strengthen your companies value and embrace selling as-a-service. The time to make the shift is now.