Product & Solution Information

Rethinking Pricing, Revenue, and Profits in the Technology Industry

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INDUSTRY BRIEF FOR TECHNOLOGY INDUSTRY Digital Disruption Demands New Approaches In response to digital disruption, traditionally software and hardware-focused companies are looking to create long-term value for customers by embracing the SaaS model of delivering value over time. Device-as-a-service (DaaS) and Software- as-a-service (SaaS) providers bundle the cost of hardware, services, and software and offer the whole package to the customer for a subscription fee. The Device-as-a-Service Model For customers, the DaaS approach simplifies things, giving them one contract with one provider, a holistic solution that's scalable over time, and the freedom to focus on their core businesses by entrusting device lifecycle management to a DaaS provider. For the DaaS company, the subscription model delivers smoother revenue and easier inventory management, along with the opportunity to expand the customer base, build brand loyalty, and ease some of the pressure on sales to generate new leads. Manual Processes Can't Tame Complexity Increasingly complex pricing scenarios and the sheer volume of products in play make the quoting process more complicated than ever before. Tech companies need to deliver customized pricing for each deal with multiple input values taken into account, including price history, price curves, region, multi-level customer willingness-to-pay attributes, and other data that is critical but too complex to add to traditional quote analysis. Another challenge is integrating capacity and usage information with pricing information, which requires fresh data updated in real time. In the face of these challenges, to capture the business of today's buyers, hardware and software companies must be able to generate an instant, accurate price customized for each deal. The ability to provide a price promptly is critical in making the sale: half of B2B buyers report choosing whichever vendor responds first to their inquiry. 2 3

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