Technology-as-a-Service Playbook

Thomas Lah and J.B. Wood
How to Grow a Profitable Subscription Business

It’s a tricky time for the integration industry, and we are all in this together – all trying to break the enigmatic code for the profitable XaaS business.

Are we at a tipping point? If so, what will it mean to the traditional business models we know and love? How do we prepare? What will successful XaaS integration businesses of the near future look like?

In theory, these new business models have incredible potential. That said, clearly there are challenges facing integration companies striving to build recurring monthly revenue.

The reality is that new XaaS offers require a significant investment. So, at the same time that revenues decline from our highly profitable legacy offers and we begin to replace them with new subscription offers, additional investments must be made.

If you want to increase RMR in your integration company, you will need to answer these three questions in the next few years:

  • How will we make our XaaS offer successful, and how will we evolve our portfolio?
  • How are we going to cost-effectively land, deliver, expand and renew customers of our XaaS offers?
  • What is our sustainable financial model for XaaS?

This book provides a series of frameworks, observations and recommendations that can help any size integration company navigate (pun intended) the gauntlet of decisions that must be made as you enter the brave world of the subscription economy.

Who should read this book?

I am responsible for helping my company stand up and optimize a XaaS offer. If you find yourself in the middle of a XaaS offer, then this book is for you. It doesn’t matter if you are the product manager for this new offer, the services executive responsible for supporting the new offer, or the CFO who is scratching your head over how to make money with this offer. There is detailed information on the plays your company will need to run to build a profitable RMR offer.

I need to educate others in my company on how they need to change in order to empower our new RMR offer. If you are struggling to convince others about the benefits of transitioning to new subscription business models, this is the book for them. Use this book to help carry key messages to these organizational functions: sales, marketing, services, finance and product engineering. Everyone in these roles can benefit from the content in these pages.

My company is not even talking about XaaS offers, but I want to understand how XaaS may impact my company. Our point of view is that the integration industry transition to XaaS models will eventually impact every integrator in some way, shape, or form. The shiny new capabilities that are part of XaaS offers are making traditional offers look dated and limited. This book can serve as a wonderful primer for ramping yourself up on the nuances of XaaS business models.

 

Technology-as-a-Service Playbook is Recommended Reading for Navigate Academy Module 49: Recurring Revenue by the Numbers

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