COLUMN: Can We Get To Everything As A Service?
The Channel Company’s Founding Partner Robert Faletra says that as the buzz around Everything as a Service grows, the question becomes can we get there and what are the benefits if we do.
For almost two decades, we have been discussing the value of recurring revenue in the strategic service provider model.
The advantage for the strategic service provider is clearly knowing what much of the year looks like on Jan. 1 rather than coming into it with a need to begin sales from dollar one year in and year out. For the customer, there is the ease of budgeting and an ability to focus on new projects rather than not understanding what maintaining the current infrastructure will cost.
But now as the buzz around Everything as a Service grows, the question becomes can we get there and what are the benefits if we do? Is it worth chasing for the strategic service provider, and will customers be more and more receptive as the months and years unfold?
[RELATED: 4 Reasons Why Everything-As-A-Service Can Capture More Customers]
From the strategic service provider ownership perspective, there are real benefits and challenges to getting to the model. It’s not always easy getting buy-in from the sales team unless the commission structure is attractive. I still have yet to meet many sales-driven individuals who don’t prefer the big commission check up front and all at once rather than smaller chunks over a longer period.