Peter Wolf: How to Build Services-as-a-Service

There’s a lot of talk about moving from traditional on-premise selling to the as-a-service model. This remains a big challenge for traditional vendors and partners alike. I’ve always thought of this as shifting the sale of technology (software and hardware) from a big upfront sale to a much smaller recurring revenue stream. But as I […]

There’s a lot of talk about moving from traditional on-premise selling to the as-a-service model. This remains a big challenge for traditional vendors and partners alike. I’ve always thought of this as shifting the sale of technology (software and hardware) from a big upfront sale to a much smaller recurring revenue stream. But as I learned in this conversation with Peter Wolf, founder of Azamba Consulting Group, partners also have a huge opportunity to shift from fixed time and materials service contracts to selling services-as-a-service. Listen to Peter as he shares the challenges and benefits of transforming his CRM services business to the subscription as-a-service model. 

Peter shared some great tips for partners looking to make this transformation. Here are my favorites:

While transitioning to a subscription services model, keep your old business fixed price model going to help soften the cash flow impact of adjusting to recurring revenue.
Aligning your services pricing to your vendors’ subscription pricing that your customers understand will be well received. 
Today’s customers are very demanding. If you’re not serving them the way they want around their results, they will find someone who can.
In this new customer experience economy, you need to provide a consistent high quality services experience.
Charge a small up-front fee to prove customer commitment and continue adding more value to your service packages. 

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It's easier for a customer to understand my subscription services model when they're buying the software the same way. @CRMWolf
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Today's customers are very demanding. If you're not serving them the way they want around their results, they will find someone who can. @CRMWolf
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Where all this transformation is coming from is not a desire for vendors or people like myself to shift. It's because the customers are leading us on this journey. @CRMWolf
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LINKS & RESOURCES

Find Peter on LinkedIn and Twitter
Learn more about the new TSIA XaaS Channel Optimization practice
Get a copy of the Technology-as-a-Service Playbook and other TSIA books
Get a 10% discount at the Channel Institute
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