AT YOUR SERVICE: XaaS Business user behavior often mirrors what consumers are doing. Similar to consumers, business buyers want consumption on demand, shopping online and flexibility in choices. Also similar to consumers, B2B buyers are turning to the convenience of subscription and pay-peruse models more and more. With the increasing popularity of subscription and pay-per-use models, the time is ripe for independent software vendors (ISVs) to jump in. There’s plenty of room to swim with the big fish such as Amazon and Zoom if you know where to go and what to do once you get there. What will help technology vendors be successful is to remember that B2B buyers are consumers at heart. Switching to a subscription or pay-per-use model provides ISVs with a more predictable way to manage revenue, essentially shifting a one-time sale to perpetual billing. In order to be successful at this, ISVs need to make sure their back-end IT and font-end IT align to handle billing from a consumption-based model. Unlike the legacy software vendor model, with a subscription model, sales teams don’t have to replicate that one-time sale to grow their businesses. Instead, a consumptionbased model allows vendors to record baseline consumption, add users and grow over time. Businesses do not have to react to spikes in revenue because they’re building a steady stream. A vendor’s success is dependent on modifying its financial model to support subscription and pay-peruse models. Subscription or pay-per use models also allow tech vendors a way to How ISVs can scale with subscriptions, pay-per-use models TIPS TO GO TO MARKET By Jess Warrington 10 CHANNELV ISION | JANUARY - FEBRUARY 2023 Outsourcing Frequency: Disaster Recovery Services Source: Avasant Research Power shoppers are adopting marketplaces at an accelerated rate Source: Mirakl 2017 2018 2019 2020 2021 70% 60% 50% 40% 30% 20% 10% 0% % of shopping done on marketplaces Power shoppers: consumers that shop online once a week or more Average Consumer Power Shopper France Australia UK Spain U.S. Italy Singapore Germany Brazil 34% 34% 34% 36% 46%
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