Empowering The Marketplace: Cloud Subscription Services and The Renewal Model
The power of Cloud solutions and services is apparent in many ways, but one of the ways we don’t often realise is by empowering customers with CHOICE.
Subscription services give subscribers the option of evaluating their investment each year and deciding whether it is in their best interest to renew. If the value is not evident and the product and services have not delivered results, customers have the power to go elsewhere. And when you are investing in technology for your business you’re investing in the future.
The future holds changes that we cannot predict and so we want to be sure that the business technology we purchase has the ability to adapt to that unforeseeable future. And Cloud technology is the platform for that future.
No one purchases technology with the thought of being handcuffed and having little to no options for change. But you won’t find any ‘On-Premise’ or ‘Hosted’ technology solutions in the market that give you the flexibility to change providers or vendors when you say ‘enough is enough’.
A heavy CapEx investment up-front forces a company to use the ‘On-Premise’ or ‘Hosted’ solution they purchase for a minimum number of years, even if that solution is not adopted well by employees and staff. In other words, you may be stuck with a solution that is only being utilised by a small percentage of your company with no recourse other than to INVEST MORE CAPITAL AND RESOURCES into convincing employees that the solution is of real value to them.
Cloud software and solutions give the marketplace a democratic approach to making that crucial technology investment. We all want more choices, and Cloud subscription products and services finally make that idea a reality.
Big benefits of the Cloud subscription or renewal model:
- Subscription products and services have a vested interest in a partnership. Unlike a one-off huge CapEx purchase, Cloud subscriptions need to keep you happy year on year. Which means they value your feedback and your constant satisfaction is crucial to their success.
- Innovation is essential to the business model. With Cloud solutions you receive the most competitive and innovative product available. In order to retain and build a strong customer base, constant innovation is infused into the products to ensure a happy customer base.
- Keeping Cloud services running smoothly is on the PROVIDER, not the SUBSCRIBER. The provider owns total liability for keeping their service running smoothly, and there are contracts in place to ensure a minimum uptime is maintained. If that minimum uptime is not adhered to (usually around 99.5% guarantee) fees are refunded to the subscriber and next year that customer may think twice about renewing.
- Subscription services provide choice. Annual subscriptions mean you can Opt-out and switch providers, products or services when you become unhappy with the current technology.
- Take advantage of the latest technological innovations for your business. No need to just ‘deal with it’. If better technology has come to the market or your current provider is not keeping to his products or services competitive, you can evaluate the weaknesses of your system, build a business case and put a plan in place for transition come renewal time.
- A focus on keeping all customers satisfied. Cloud service and products don’t have ‘big customers’ they need to please. Cloud technology is about providing a standard platform where tens of thousands, or hundreds of thousands, of customers operate on the same infrastructure (true cloud multi-tenancy) and all customers share the same space of importance. Cloud services keep the platform happy.