In a post-COVID-19 world, sellers of products and services might find it easier to charge over an extended period based on consumption rather than asking for large up-front cash payments. The subscription model offers new opportunities for businesses to enhance the value of their offerings as they become more embedded in the changing context of their clients’ customer journeys.

Through subscriptions, customers access a product or service for a certain time, a set usage volume, or a defined business output. Startups in all sectors are already targeting profitable market segments with subscription offerings. Traditional firms are following, as they realize that:

  • We are already in the age of subscriptions. Every startup can spin up servers on demand to get access to storage, compute, and countless applications. This will manifest itself in many new subscription competitors for traditional firms.
  • The subscription model is not limited to the software-as-a-service model. SaaS is only one of several subscription model options. Prepare to compete with “anything-as-a-service.” The type of subscription model depends on and speeds up your innovation approach.
  • The best organizations innovate their business model and value creation pitch. Leading businesses move beyond one-time-sales models. They search opportunities to continuously impress customers. The subscription model offers them value-based differentiation.

The report “The Rise Of The Subscription Business Model” helps CIOs and other tech decision makers at traditional businesses understand the opportunities and challenges of the subscription business model.