Shifting from technology provider to technology partner

Rodolphe Goudin

January 16, 2024

Enterprises benefit from subscription models as technology partners enable new value and new opportunities.

It’s no surprise that digital transformation is on the rise. As the world rapidly moves toward digitalisation, how we do business and how we think about technology are changing as well. Enterprises are no longer looking for technology providers who simply help them choose hardware and software solutions. They’re looking for expert technology partners who can engage with them and provide options to respond to today’s business demands.

Organisations are moving away from traditional business models where they purchase a solution and manage it themselves with no business benefit guarantees. As enterprises shift to subscription models, they are looking for a technology partner who will commit to efficiency increases, provide return on investment (ROI) and enable new flexibility to optimise business benefits and limit expenses. And it doesn’t end there. Quantifiable metrics must be available to identify the tangible business outcomes to ensure the enterprise trusts the value being provided and will renew their subscription.

As enterprises undergo these changes, business owners rather than IT teams are making technology decisions and are the ones who need to be convinced of the subscription model benefits. And while IT is still very much involved in the process, it’s the relationship that’s changed from a pure sales relationship to a consulting relationship with IT teams.

Agility and efficiency

With a technology subscription model, enterprises can quickly and easily adopt new, more flexible ways of working to solve business challenges or address evolving business requirements. Gone is the need to plan and execute complex deployments, or to pay for solutions that are only partially used. With subscription models, cash flows can be streamlined, and predefined monthly or yearly payments let organisations better manage their business. Additionally, IT resources are freed up to focus on higher-value initiatives for the company. The right technology partner can also provide expertise organisations may not have in-house.

A winning combination

Changing needs and expectations are creating new opportunities for technology partners and enterprises. Technology subscription models enable a predictable, recurring revenue stream that helps strengthen the technology provider’s business. It also lets them raise their value by becoming a strategic partner focused on solving customer problems and enabling business goals rather than just selling products and solutions. Technology providers that take advantage of these opportunities are well-positioned for growth.

Additionally, enterprises benefit from predictable business costs that provide the flexibility to manage their business as it ebbs and flows. Technology partners that provide the expertise enterprises need can be valuable partners, making it less likely that they will switch to another provider. Introducing a Customer Success Manager can further help technology partners meet enterprise needs by understanding their business, identifying new opportunities, suggesting technology options and helping to transition to new technologies.

An end-to-end process that aligns with the customer journey can help technology partners ensure enterprises have access to the right technologies and business models at the right stage of their digital transformation.

Download our “Grow your business with technology subscriptions and customer success teams” whitepaper to learn more about ALE’s customer success initiatives.