Rise of Consumption Based Managed Services
Use more, pay more | Use less, pay less.
The IT services landscape is continually evolving, reflecting the diverse industries it supports and the varying demands placed upon it. For many organizations, decisions hinge on cost-effectiveness and contractual flexibility—seeking optimal services at competitive prices with minimal future complications. Conversely, numerous businesses recognize that certain functions are best retained internally. This realization prompts a critical evaluation: which services should we internalize, and what drives these IT services decisions ?
What Drives these IT Services Decisions?
From an overall perspective, there is little variation between the above decision factors – IT Services decisions appear to be relatively balanced in the weighting of criteria.
Often, IT service decisions boil down to a simple equation: maximizing value while minimizing risk. It’s about securing the best price, a solid contract, and the flexibility to adapt later. In other words: most companies don’t want to lay out a bunch of capital to try a new technology. They want the freedom to try it on for size and see if it grows well along with them. The concept of consumption-based IT Services is well known, but we’re not sure it’s well understood.
What is driving consumption based services
While cloud solutions dominate the markets, there are multiple research and surveys that reveal the compelling value of consumption-based IT services. Not only do they consistently deliver anticipated benefits, but they frequently surpass them.
With consumption based services, companies can have their transformation and innovation road maps to be as flexible as their business while constantly right-sizing and having costs stay in line. This is what companies have long desired, and the opportunity is now presenting itself readily with consumption-based services.
Consumption-based pricing is a model that charges customers based on their actual usage or consumption. It offers several advantages, including lower barriers to entry, pricing transparency and the agility to grow and scale to meet customer needs. However, choosing who to partner with to implement your transformation solutions is the key to success. After all, in today’s competitive landscape it’s important to work with a managed services provider prepared to work closely with you, one that has experience working with industry leaders and is ready to learn your business’s specific requirements.
Are customers interested in paying based on consumption, and are competitors offering it?
In some applications like enterprise software for enterprise resource planning (ERP), human capital management (HCM), and customer relationship management (CRM), subscriptions based on seat count work well, and few customers are interested in changing models. For them, the value of the software lies in each user’s ability to create a unique workspace and workflow for managing customer and prospect pipelines.
CRMIT Solutions prides itself on being the leading CRM managed services provider of decision transformation and CRM services. Companies worldwide rely on CRMIT’s Application Success Value Plan [ASVP] to build, run and grow modern businesses as a consumption based service. ASVP’s robust and flexible monetization model will help companies unlock recurring growth.
Dinesh Poduval
Vice President of MarketingTags: ASVP, CRM, CRMIT solutions, Managed Services