What's Driving Subscription Services?

From personal care products to groceries and movies on demand, cloud-based subscriptions are fulfilling the needs of consumers across an array of market sectors. Nowhere is this shift to subscription services more evident than in the technology sector. By adopting an Everything-as-a-Service (XaaS) delivery model, companies are able to tailor their computing environments to shape the experiences they want for customers as well as their workforce.

While the need to customize computing and technology services is a major driver, there are a number of other factors fueling the growing global corporate demand for XaaS. By securing utility-based offerings on a per-seat, per-month model based on usage, companies have more control over costs and can free up capital and resources to pursue new product and services initiatives. XaaS eliminates upgrade costs so that companies can easily take advantage of new technology. And the pay-as-you go model makes it easier as well as more cost effective to scale to meet changes in the workforce or business.

XaaS adoption follows years of companies employing vertical cloud-based "as-a-service delivery models, such as Software-as-a-Service (SaaS) and Platform-as-a-Service (Paas). Today, XaaS encompasses the full range of business models and industry specific business processes now delivered over the Internet that that previously were delivered on site. Estimates from Infiniti Research LTD project XaaS growth at a CAGR of 38 percent from 2016 to 2020.

Device as a service emerges
In the evolving XaaS era, Device-as-a-Service (DaaS) is an emerging delivery models that increasingly is finding a receptive audience among companies looking for a new way to consume technology. Under DaaS, a company leases a range of devices for a length of time and pays a monthly fee for each device under a single contract with terms specific to its needs. Along with technology, customers get customized services and support, including device configuration and installation, data migration, onsite support and technology recycling, so that they can manage total cost of ownership with contractual precision.

By providing customers with a single point of contact, DaaS significantly reduces the complexity and hidden and visible costs of device procurement and deployment to support changes in the workforce.

Like other XaaS models, DaaS provides the ability to easily scale up or down to accommodate workforce changes providing access to the latest technology from smart phones to state-of-the art PCs to workstation. New models eliminate user productivity issues caused by an aging fleet.

DaaS contracts also unburden IT departments from the responsibility to manage and maintain devices so staff can focus on strategic company initiatives, better service customers and meet competitive marketplace challenges.

Among the other advantages of DaaS is a boost in data security. By monitoring a company's entire fleet of devices to assure that they adhere to security policy regarding passwords, approved apps and access to data, DaaS protects companies against vulnerabilities that could pave the way cyber-attacks. DaaS also provides analytical insight on fleet inventory, location and condition to help maintain security and includes fleet end-of-life disposal, which ensures that devices and data don't fall into the wrong hands.

In its survey of US-based IT buyers representing a range of companies of all sizes conducted last year, IDC found one quarter of participants already were actively looking at such services. Among those that were not, nearly 20 percent said that they planned to do so in the next 12 months. Adding to its appeal, DaaS also enables companies to shift the high cost acquiring new technology from a capital expenditure (CAPEX), which they must depreciate, to an operating expense. Doing so, frees up cash for investment in strategic initiatives that drive revenue and growth.

Managed Print Services makes compelling case
Companies are recognizing that by harnessing the power of information within their printing environment they can streamline and enhance workflows to boost productivity and efficiency among their workforce. As a result, the Managed Print Services (MPS) user-based subscription model is experiencing significant growth with expectations the market will reach $94.97 billion in 2024, rising from $26.18 billion in 2015, according to Transparency Market Research.

By consolidating office-wide printing, MPS enables companies to gain insight into print usage patterns and needs in order to ensure that the right equipment is installed in the most appropriate locations for users to make the most of these capabilities. The insight results in device consolidation through a higher ratio of employees per printer, fewer supplies and a reduction in wasted paper. MPS results in substantial savings through the replacement of older equipment with newer models that provide access to the latest technology for printing, scanning and faxing documents.

As with other subscription services, MPS frees up IT time so that staff can focus on other more strategic business initiatives. Also because of the increasing threat of cyber-attacks on networked printers as way into corporate networks, MPS providers increasingly are offering security assessments and secure printing services as part of their offering.

Subscription-based services from devices to print services and more offer many benefits and above all provide a cohesive one-stop experience so that companies can focus on the business and not on its underlying infrastructure and systems.