TAMCO specializes in helping integrators adopt a technology-as-a-service sales model. We partner with hundreds of integrators and speak with hundreds more who are exploring whether they truly want to make a shift to a service-focused sales strategy. One of the most popular questions posed to us during initial conversations is – Who is a good fit for technology-as-a-service solutions?
Usually, these integrators simply want to know which vertical markets use technology-as-a-service solutions the most. This is a logical question. However, while we will address this specific detail, we also want to elaborate on this idea of “good fit,” because integrators need to be aware of many more components to a "good fit" so they can maximize their success if they choose to sell technology-as-a-service solutions.
Which Vertical Markets Are a Good Fit for Technology-As-A-Service?
With respect to vertical markets, simply put, customers in virtually every industry see value in implementing technology-as-a-service solutions. Our partners have provided as-a-service solutions to organizations within the following verticals:
- healthcare,
- banking or financial institutions,
- government or municipalities,
- manufacturing,
- legal,
- K-12 and higher education,
- nonprofits,
- a wide variety of commercial organizations,
- retail,
- hospitality,
- house of worship,
- tribal,
- agriculture,
- and many other sectors.
As-A-Service Trends Within Verticals
In terms of certain customer types we may see with somewhat more frequency, AV-as-a-service seems to attract a lot of corporations that want board rooms, huddle rooms, or other conferencing solutions. Schools and houses of worship also seem to find AV-as-a-service solutions attractive.
Security-as-a-service sees a lot of interest from retail sales organizations, casinos, schools, and banks.
Interest in general technology-as-a-service is pretty broad and evenly distributed with no particular verticals that stick out.
The important thing to be aware of regarding vertical markets is that the only place technology-as-a-service solutions are not a fit is in specific segments of the market where we simply cannot provide it for legal or contractual reasons. Those specific segments currently include federal government agencies, adult entertainment establishments, and cannabis industry organizations.
What Transaction Size Makes a "Good Fit" for As-A-Service?
This is an interesting one. Some integrators believe organizations doing larger transactions would be more interested in the as-a-service approach, while others think smaller solution transactions are better suited to an as-a-service payment program.
The truth, again, is that there is no such thing as a "good fit" transaction size. Our partners sell as-a-service solutions to a variety of customers with transaction sizes ranging from $10,000 to millions of dollars. Assuming a customer is credit-worthy, we do not have a maximum size transaction limitation.
In terms of frequency, keep in mind there are a lot more $100,000 opportunities in the marketplace than there are $1,000,000 opportunities. So logically, with regard to the volume of transactions, we see the majority of partner transactions in the $40,000 to $200,000 range.
Misconception: As-A-Service is Only a Good Fit for Cash-Poor/Budget-Strapped Customers
This is an important topic to understand because it is counter to what so many sales executives believe to be a glaringly "good fit".
It is tempting to think a payment program like technology-as-a-service is ideal for customers who have very little capital or those who have run into budget issues.
The reality is, that regardless of customer vertical and regardless of transaction size, these are the worst group of prospects for as-a-service solutions. Why? The primary reason is, that even though as-a-service is a subscription payment, customers still must pass a credit process in order to be approved for the as-a-service payment program. Therefore, customers who are cash-poor or have budget issues are often a sign that their financial strength may not merit approval.
Ultimately, very few of these customers are approved for technology-as-a-service. But, even more interesting, the rare few that can be approved often still do nothing in terms of a new solution.
The Better Way to Consider Who Is A “Good Fit” For As-A-Service
- Do not focus on a specific type of industry vertical.
- Do not focus on certain transaction sizes.
- Definitely do not believe that just because a customer has plenty of funds to pay cash for a solution many times over, they will not be interested in an as-a-service solution.
What To Focus On Instead...
Place your focus on the unique benefits that technology-as-a-service solutions provide customers versus purchase-to-own solutions. There are significant universal benefits that appeal to many types of customers. If your customers and prospects value any of the following, then they are a potentially good fit:
- Customers who want the benefits of having access to and use of technology solutions without the burdens of ownership.
- Customers who desire control and flexibility to scale and adjust the solution as their needs change, BUT without the large financial burdens, penalties, and consequences.
- Customers who want to use their capital for true investments (that will appreciate in value) because they understand that ownership and the resulting depreciation of technology solutions is a waste of their capital.
- Customers that want the peace of mind of fixed, manageable payments for an all-inclusive solution (including design, installation, hardware, software, warranty, & support services for an entire multi-year term).
As every person and every organization becomes further entrenched in the value of subscription services, there is simply a broad growing interest in technology-as-a-service offerings.
It’s important to note that the points made here are generic. But they are meaningful enough to spark discussions with a customer during which you can determine more specific elements of value for their individual circumstances.
TAMCO Partner Technology-As-A-Service Customer Sales Example
TAMCO Partners can log onto the partner portal and find the most current instances of partner sales successes, case studies, and other content that provides more detail and perspective on what customers see value in technology-as-a-service solutions.
As a small sampling from the portal, we show some bannered partner wins below along with a link to a recent case study.
