Technology-as-a-Service Playbook

Thomas Lah, B. Wood J.

Description

Technology-as-a-Service Playbook defines the tactical and strategic plays technology companies must run to build a profitable subscription business. Whether you are a pureplay cloud company or a traditional technology provider making the pivot to the cloud, this book will help guide your decision-making and execution around the "as-a-service" model to put your company on a path to profitable growth.This cloud-driven journey will affect every part of the organization. How offers are designed, built, marketed, sold, and serviced will all need to change. And these transformations are not limited to OEMs-they will also directly impact the vast network of channel partners. After all, it's not just about building recurring revenue, it's about building PROFITABLE recurring revenue. Technology-as-a-Service Playbook is the road map to the next-generation tech business model.

Sujets

• Informatique
• Strategic management

Informations

• Publié par: Point B Inc
• Date de parution: 11 avril 2016
• Nombre de lectures: 0
• EAN13: 9780986046247
• Langue: English
• Poids de l'ouvrage: 6 Mo

Extrait

Technology-as-a-Service Playbook

How to Grow a Profitable Subscription Business

Thomas Lah J.B. Wood

Copyrîght © 2016 Technoogy Servîces ïndustry Assocîatîon

ïSBN: 978-0-9860462-3-0

Número de Contro de a Bîbîoteca de Congreso: 2016938814

A Rîghts Reserved. No part o thîs book may be reproduced or transmîtted în any orm or by any means, eectronîc or mechanîca, încudîng photocopyîng, recordîng, or by any înormatîon storage and retrîeva system wîthout wrîtten permîssîon rom the authors, except or the încusîon o brîe quotatîons în a revîew.

Prînted în the Unîted States o Amerîca.

Contents

Chapter 1 Dîsruptîon Happens......................................1 Chapter 2 The 3x3 o XaaS ...........................................19 Chapter 3 Dîggîng an Economîc Moat or Your XaaS Busîness ......................................39 Chapter 4 Stressîng Tradîtîona Organîzatîona Structures .....................................................81 Chapter 5 Swaowîng the Fîsh...................................... 119 Chapter 6 The Power o XaaS Portoîos ....................... 155 Chapter 7 XaaS Customer Engagement Modes ............ 185 Chapter 8 The Fînancîa Keys o XaaS........................... 243 Chapter 9 The Case or Managed Servîces..................... 283 Chapter 10 Changes în the Channe................................ 307 Endnotes.......................................................................... 339 ïndex....3..........54..................................................................

1

Disruption Happens

How can you spot a tîppîng poînt? Macom Gadwe, whose 1 book,The Tîppîng Poînt, heped says ît’s thatpopuarîze the term, magîc moment when an îdea, trend, or socîa behavîor crosses a threshod, tîps, and spreads îke wîdire. We, we thînk one has come to dozens o busîness-to-busîness (B2B) and busîness-to- consumer (B2C) technoogy îndustrîes. Ten years ago, we irst stood în ront o thousands o tech executîves and worrîed aoud that the coud era was goîng to dîs- rupt the tech îndustry more prooundy than any other transor- matîon în îts vaunted 50-year hîstory. Our worry was not rooted în dîsruptîve technoogy but în dîsruptîve busîness modes. Bîg companîes îke ïBM, HP, and Orace have a weathered gen- eratîona changes to computîng modes and archîtectures many tîmes. Handîng new waves o technoogy îs od hat; they have penty o pays or that. But we worrîed that thîs perect storm o new technoogyandnew busîness modes coud re-cast the very oundatîons o market eadershîp în the îndustry. A ot has happened sînce that decade. Uness you have stub- borny avoîded a busîness medîa over the past ew years, ît îs împossîbe to have mîssed the înterest în subscrîptîon busîness modes, not just în ïT but ît neary every technoogy-reated

2

Technology-as-a-Servîce Playbook

îndustry. Today’s energy surroundîng subscrîptîon busîness mod- es îs the oow-on to the buzz a ew years ago about the “sharîng economy”—somethîng thatTîmemagazîne saîd was one o the top 10 îdeas that woud change the word back în 2011. The at- tractîon o the sharîng economy was and îs the abîîty to sîmpy access rather than own physîca and human assets. For the pro- vîder, ît produces recurrîng revenue streams that keep customers spendîng or years—even decades. Athough subscrîptîon busîness modes and the sharîng econ- omy can manîest themseves în many îndustrîes, thîs book îs concerned ony wîth tech and near-tech îndustrîes. Even more specîicay, we are ocused on hîghy coud-enabed, techno- ogy-as-a-servîce ofers. The categorîes o these ofers take many popuar names.There are sotware-as-a-servîce (SaaS) ofers, pat- orm-as-a-servîce (PaaS) ofers, înrastructure-as-a-servîce (ïaaS) ofers, managed servîces, and so orth.To keep ît sîmpe or the rest o the book, we are goîng to reer to them coectîvey as XaaS. You can make the “X” whatever you want. ït sîmpy means that you are oferîng sophîstîcated computer sotware, hardware, în- dustrîa equîpment or devîces, and/or servîces în an “as-a-servîce” consumptîon mode to your customers.We woud expect some or a o the ofer to be deîvered through the coud. ï you are seîng subscrîptîons to razor bades or ine wîne over the ïnternet, thîs book probaby îsn’t or you. On the other hand, î you are învoved în the strategy, deveopment, inance, marketîng, servîces, or saes o compex, coud-based technoogy soutîons în ïT, îndustrîa equîpment, heath care, or consumer markets, and terms îke SaaS and managed servîces resonate wîth you and your team . . . then keep readîng.We have some înterestîng observatîons to pass aong. Very împortanty, î you are învoved în tradîtîona (asset-based, on-premîse) technoogy and you are wonderîng what XaaS tech- noogy wî mean to your job and your company . . . thendeinîtey keep readîng.That’s because your company îs about to be caught up în the busîness mode tîppîng poînt. To remaîn competîtîve,

Dîsruptîon Happens

3

you wî not ony need new ofers, but you wî aso need a new way to operate. Beîng connected to your customers îs the catayst. Beore you begîn, you mîght be askîng yourse: Just where are these observatîons comîng rom? OK, aîr questîon. Our answer begîns wîth thîs statement: We don’t know a the answers, and anyone who tes you they do shoud be shown the door. ït’s stî eary days în assessîng how the coud era o tech wî uy dîsrupt the technoogy îndustry; predîctîng the uture îs dîcey. ït’s îke predîctîng the uture o the cean energy îndus- try. ït’s hard enough to igure out whîch technîca approaches wî utîmatey wîn the market, much ess what the best busîness practîces o the new eaders wî be. So, who are we and why thîs book? The answer îs that we run the Technoogy Servîces ïndustry Assocîatîon (TSïA). As one o tech’s argest îndustry assocîatîons, our company gets to unîquey study and tak wîth hundreds o the word’s most successu technoogy and îndustrîa companîes each and every day.We are an încredîby research-întensîve bunch. We have experîenced îndustry executîves, PhD researchers, and data anaysts ookîng at a the data we coect rom pubîc sources and rom the companîes themseves.We ied thousands o orma înquîrîes annuay rom management at both tradîtîona and XaaS companîes wantîng to know about the trends and best practîces în runnîng a successu busîness în thîs tîme o radîca change.They want to know what essons we are earnîng rom our research on top-perormîng companîes because we have access to data that îs sîmpy not avaîabe în the pubîc domaîn. ït’s rom a thîs research and înteractîon that we draw our observatîons. So, though we can’t predîct the uture, we thînk we may be în one o the best po- sîtîons to dîssect and debate ît. Most împortanty, we thînk some wînnîng patterns are emergîng.That îs what we want to share în thîs book.You mîght not agree wîth a o our observatîons, and not every one mîght pay out. But, we thînk they are împortant or every executîve and manager în the tech word to be aware o and consîder. ït’s a trîcky tîme. Are we at a tîppîng poînt? ï so,

4

Technology-as-a-Servîce Playbook

what wî ît mean to the tradîtîona busîness modes we know and ove? How do we prepare? What wî successu XaaS organîza- tîons o the near uture ook îke? ïn a nutshe, here îs what we have earned ater studyîng the topîc rom mutîpe anges or 8 years: XaaS îs not just technoogy that îs prîced by the month and hosted în the coud. ï ît were that sîmpe, you woudn’t need thîs book. We beîeve that, as the enîgmatîc smoke cears around the coud, what’s emergîng îs an îmage o success în XaaS busîness modes that îs undamentay dîferent rom tradîtîona tech. ït’s somethîng that goes way be- yond the technoogy and the prîcîng mode . . . somethîng that cuts deepy înto the underyîng busîness mode the tech îndustry has grown comortabe wîth. ït’s just a new way o runnîng a tech company. And ît’s powered by your rea-tîme connectîons to the customer. What’s most înterestîng—why we wrote thîs book—îs that NOBODY truy knows what that new way îs! ït’s a act that there îs no B2B subscrîptîon busîness that îs as rapîdy grow- îngand as proitabe as the tradîtîona tech bewethers were în theîr heyday. Ony the XaaS CEO who can make that caîm can wrîte the deinîtîve book. And reay, they shoud accompîsh ît more than once to prove that they have perected the ormua. Untî that day, we are a în thîs together—a tryîng to break the enîgmatîc code or the proitabe XaaS busîness.We are debatîng whether the tîppîng poînt has arrîved and what îe ater that wî ook îke. Let’s ace ît: The cost o buîdîng sotware îs droppîng ast. We thînk ît’s the busîness executîon around the code—not just the abîîty to wrîte code—that wî determîne the success or aîure o uture îcons. Just how dîferent mîght the wînnîng B2B/B4B XaaS com- pany ook? Here are 10 assertîons that are a sampe o thîngs we wî cover:

 r The abîîty to “prove deîverabe busîness outcomes’” wî suppant “wîn the eature bake-of ” as the centra ocus o

Dîsruptîon Happens

5

senîor eadershîp at tech companîes.Thîs wî cause a dramatîc re-thînkîng o învestments and top taent aocatîon. Ofers wî “go vertîca” în order to better deîver u vaue to the customer. Servîces wî move rom the back o the bus to the ront o the bus. But at the same tîme . . .  r The abîîty o technoogy compa-Sotware wî eat servîces. nîes to reduce technîca compexîty and buîd best customer practîces înto theîr sotware wî be a deinîng characterîstîc o successu XaaS provîders.Vaue-added servîces wî survîve and prosper as a concept. However, abor-deîvered servîces (except hîghy consutatîve expertîse) wî stî be vîewed by management as a boat anchor. Eventuay, deveopment wî accept that theîr charter încudes the “u product” and not just a coectîon o eatures.They wî buîd a the capabîîtîes înto the product that are needed not ony to wîn the eature bake-of but aso to enabe the dîferentîated servîces that wî drîve adoptîon, encourage expansîon, reduce saes costs, and have a pethora o other objectîves. These are the capabîîtîes needed to create downstream proits and sustaîned competî- tîve advantage.  r Suppîers and customers wî încreasîngy compete as every company becomes a tech company. Low-cost sotware deve- opment wî turn îndustrîa buyers o technoogy înto techno- ogy producers themseves.Technoogy reseers wî ind theîr orîgîna equîpment manuacturer (OEM) suppîers competîng wîth them through coud-enabed, dîrect modes. Large XaaS provîders wî manuacture theîr own hardware and buîd theîr own sotware, no onger beîng a buyer o technoogy but actu- ay overseeîng the manuacture o the products they use. (By the way, a o thîs îs aready happenîng at scae.)  r The act o seîng wî undergo radîca change. Customers can now se-serve a huge amount o the înormatîon they need to make a technoogy purchase decîsîon.They wî be abe to