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3 reasons why you should get into the ‘as-a-service’ business

Peter Krass's picture

by Peter Krass on 02/18/2022
Blog Category: devices

Providing cloud-based as-a-Service subscriptions isn’t only for the big guys like Salesforce.com and Intuit. Small and midsize tech providers can — and should — get into this fast-growing business too.

That was the main message conveyed in a new Intel Partner University webinar featuring Eric Townsend, the company’s director of North American SMB and MSP marketing (pictured below).

Eric Townsend

“This is no longer a product economy or service economy,” Townsend told webinar attendees. “Now it’s a subscription economy.”

As examples, Townsend pointed beyond the tech industry to subscription-based offerings for movies, furniture, artwork, camping gear and even puppies.

Returning to tech, he pointed out that the Device as a Service (DaaS) market is forecast to grow at a compound rate of nearly 40% a year. By 2027, that could deliver global revenue of $311 billion.

3 driving forces

What’s behind the shift to tech subscriptions. According to Townsend, 3 main forces:

> The business model has matured. So you can give customer more value, and make more money yourself. It’s not just hardware anymore. Project services go along with it, too, before, during and after. That can include assessment, planning, transition, onboarding, installing and training.

> Conversations are already happening across the channel. Big distros, finance groups have as-a-Service initiatives already. For example, you can finance your services agreement. Also, industry initiatives help small businesses use tech more. “If you don’t have this conversation with your customers,” Townsend said, “someone else will.”

> The financial support structure is in place. Customers are looking at the economics. With the cloud, there’s an opportunity to move Capex spending to Opex, and that also helps level out cash flow. There can be favorable tax advantages, too.

Watch this Intel Partner University webinar on demand: Top 3 Scale Areas for Partners to Grow ‘As-a-Service’ Business in 2022.

Intel Partner Alliance members will receive 5 training credits for watching the webinar on demand. Not yet a member? Discover the benefits of Intel Partner Alliance and register to join today.

 

 

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