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The security industry knows the value of recurring revenue, as it’s the foundation of the residential security monitoring market. Commercial systems integrators have traditionally taken a different approach, focused on one-time commodity-based sales that lack the financial benefits provided through long-term serviced-based agreements.
Paul Metzheiser, Managing Partner with TAMCO, a technology financing company contributed to securityinformed.com where he discusses how system integrators have traditionally sold solutions and why in today's subscription economy, they should be looking to as-a-service solutions and service sales models. Making the pivot to service-based sales models creates opportunities to bundle in support services outside the manufacturers warranty, leading to system integrators building new predictable and sustainable recurring revenue streams for multiple years.