Ownership vs Access: Why subscriptions are winning in enterprise communications

Yesterday’s communications success is today’s commercial rut. Despite partners knowing it like the back of their hands, selling communications as products is no longer the shiniest route to profitability. Nick Wright explores why subscriptions have displaced traditional ownership and won the hearts of businesses everywhere.

Not long ago, the idea of ‘ownership’ was one to celebrate. Through a one-time transaction, businesses would bring IT products truly in-house to make and maintain as their own, giving a sense of stability and permanence.

But over time, the ownership bubble has begun to burst. Customers developed a growing distaste for upfront and operational costs, maintenance, and the ongoing risk of obsolescence, to name a few.

Fortunately, an antidote has been found in subscription-based models. Boasting a promise of flexibility, affordability, and convenience, subscriptions are reshaping the future of communications investments.

Why do subscriptions matter to communications customers?

Customers will be all too familiar with the complexity and costliness of traditional communications purchasing. Thanks to subscriptions, customers now have a simpler, more cost-effective method of procurement.

For instance, subscription models can spare businesses from having to manage separate software licences, support services, and upgrade entitlements. Instead, customers can enjoy an all-encompassing, single contract with simplified monthly or annual pricing. Similarly, subscriptions offer customers the opportunity to only pay for what they use, providing cost-effective access to products and services and ensuring better value for money.

Subscriptions also eliminate the need for long-term commitments. No longer faced with the pressure of ‘getting your money’s worth’, customers become empowered to adjust and adapt their services and navigate changing requirements more seamlessly.

Subscription models often include automatic updates as part of the service. This means customers can keep their cloud-based solutions up to date and easily access the latest features. In contrast, traditional purchasing would have customers making additional payments and actively seeking installations for updates.

How do partners benefit from subscriptions?

Subscription models are equally advantageous for reseller partners. Rather than a one-time sale, partners can establish recurring revenue streams from their customers. Unlike the stability felt in traditional models, this type of financial steadiness paves the way for better business planning.

Better still, partners can boost customer loyalty and retention by offering consistent value through subscription models. By including updates and support in their subscription offerings, partners can boost satisfaction and build lasting relationships with their customers.

Certain subscription offerings can also reduce operational costs. For example, some allow partners to leverage their offering and support services without the need for in-house expertise or investment.

How we can help you

Meeting the demand for subscription-based models can be challenging, so we’re simplifying this new way of doing business for our partners.

We offer numerous value-added services to help partners maximise their recurring revenue opportunities, including:

• Training and education
• Migration tools
• Analytics
• Demo programs
• Webinars

Behind those services are our dedicated, locally available teams of experts. Our people provide efficient prestaging facilities and fast, reliable delivery, making for a partnership you can truly depend on.

Get in touch to find out how we can help you meet your customers’ subscription needs.