Heard about the Internet of Things or IoT? How about Anything as a Service or XaaS? Before you say that’s too “out there” for you, imagine a new business model for your product or service that could have a greater, longer lasting impact on your profitability than any rehashed business plan.
Yes, it’s a subscription-based business model and the reason your product or service might fit the bill is the Internet of Things or IoT-technology that allows you to track the utilization, QoS, and metered costs of virtually “anything” a customer wishes to use to enjoy the benefits of
- Lower up-front costs - can acquire needed goods or services without breaking the bank.
- Less risk – ability to turn off the service when it’s no longer needed.
- Higher quality – service providers are highly motivated to retain the ongoing business of their customers.
The benefits to the subscription provider include predictable revenue streams, customer stickiness, reduced sales and marketing costs, product development overhead and much more. But it does require specialized knowledge and expertise, careful planning, and buy-in from management to the front lines.
Read this point of view from Hari Haran, Xoriant President and Chief Revenue Officer to find out if IoT-enabled XaaS might provide your next big innovation. Begin here with the first of a three-part series that will explore the challenges and solutions to bridging IoT solutions and XaaS.