Written by Mark Wass, Strategic Sales Director, UK and North EMEA at CloudBlue
When facing such uncertainty in economic markets, it is important that there is a fundamental shift in how businesses enhance their financial situation during digital transformation. Everything-as-a-service (XaaS) provides an answer, and a way forward, and should be part of the long-term strategy for every business.
Whether it’s software-as-a-service (SaaS), security-as-a-service (SECaaS), or even hardware-as-a-service (HaaS), companies should be striving to diversify their revenue streams with a digital-first mindset.
Consumption on demand
If it’s manual, it’s already broken. Cloud computing will continue to be a cornerstone of innovation and growth, enabling companies to remain agile and scale faster. The research firm Gartner predicts that by 2027, more than 50% of enterprises will use industry cloud platforms.
With XaaS, companies can provide products and services on demand. Subscription and pay-per-use models allow businesses to have a more predictable way to manage revenue, while providing agility for business customers.
Manufacturing has evolved beyond the physical, utilising digital technologies to service customers. Traditionally, manufacturers would build a product, ship that product and be done. Now, manufacturers can maintain a continuous connection with customers through consumption on demand models. For example, one of our manufacturing clients has a software component – basically a SaaS version of their product that they can get to their customers in a matter of minutes. If business customers have to purchase a licensed product that takes weeks to arrive, they’re going to take their business elsewhere.
Digital bundling as a solution
Like regular consumers, B2B customers want solutions that are only a click away. Digital bundling adds value to a business – allowing companies to distinguish themselves as providers with a smorgasbord of offerings, while building client retention.
Telcos have jumped into digital bundling. For example, along with a phone and a plan, a telecom service provider might also offer their customers the opportunity to choose Office 365 or DocuSign as an added service. Do customers need security on their end- product? When businesses have partners, they can offer these services in a bundle. This allows Telcos to focus more effectively on creating customer stickiness, deepening per-customer contracts with bundled services.
A good example is Telefonica Tech, which offers a cybersecurity package that includes a physical firewall, SaaS licenses and professional setup services. Customers can order through the company’s marketplace as a single solution that is delivered at a monthly fee.
The important outcome of offering these bundles is that they significantly simplify their business customers’ operations. The more telcos invest in complex automation, the more personalisation they will be able to offer through the automated deployment of packages, such as a complete workplace-as-a-service (WaaS).
Resilience in supply chains
Automation across the supply chain saves manpower, while increasing communication and connectivity between business partners. Digital technologies increase visibility across the supply chain, providing data in real time. This vital information allows organisations to identify supply chain chokepoints, track inventory and communicate quickly throughout the supply chain.
The pandemic highlighted how vital it is for companies to invest in digital transformation. The more a business leveraged digital technologies during the crisis, the more likely they were to adapt quickly to rapid change. Zoom and Microsoft Teams are two examples. Organisations that did not have that kind of supply chain resiliency, whether it be from a SaaS standpoint or an integration standpoint, were more likely to struggle because they were not ready.
When building the cloud platform, there is a need for end-to-end integration, automation, and scalability. Companies must decide how they are going to market – direct sales or through channels. The power of a platform is that you’re running on somebody else’s infrastructure, allowing businesses to scale up quickly when needed.
Growth via a digital ecosystem
A common mistake companies make is trying to do it alone. It can be a painstaking process for businesses to build application program interface (API) systems as well as manage them. Expanding their reach more rapidly through a digital ecosystem that enables setting up of APIs for products into a catalogue that can be distributed globally. Building out through an ecosystem is less expensive, less time-consuming and helps businesses scale faster.
Gartner’s report on Top Technology Trends for 2023 says worldwide end-user spending on public cloud services is forecast to grow more than 20% to total $591.8 billion next year. The report emphasises the business value of being able to scale vertical solutions and product delivery.
By using hyperscalable XaaS marketplaces, businesses can add solutions to their catalog without increased overhead costs. A global self-service marketplace platform automates all ordering, fulfillment, and billing processes.
A unified view and data integration improve visibility and workflow as well. Subsidiaries are then able to manage their quotes and regional catalogues, as well as curate location-specific listings while the service provision is handled centrally. Scaling these processes with digitisation is critical to reduce costs and free up resources.
A digital ecosystem allows businesses to expand customer growth and strengthen their foothold in the market by diversifying their revenue sources through cross selling a variety of partner products.
Experienced managed service providers (MSP) enable businesses to seamlessly transform their e-commerce shops into as-a-service marketplace ecosystems. The platform provider handles all the ordering, fulfillment, subscription management and billing flows, including managing multi-tier reseller levels. Companies can easily manage a catalog of third-party vendor solutions to be offered through their own marketplace. They can also deliver their own products and digital bundles by way of multiple marketplaces in any language, currency, and geography.
XaaS marketplaces allow businesses to become better problem-solvers for their end customers. It also enables them to anticipate risks and proactively offer creative solutions. An increase in demand from customers for customised offerings means any ecosystem partner has the potential to thrive in the service economy, where nearly everything can be delivered to customers as a service.