Subscription models

Subscription models, also known as "as-a-Service" or membership models are a way of selling a company's offerings - such as hardware, software or services - not as a one-off product but as an ongoing solution that can be charged to customers in a recurring way; including on a subscription, usage, or outcome basis.

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Every business seeks to establish a "forever deal" with the customers they serve. They want predictable recurring revenue, direct relationships that avoid middlemen, and behavioural data that allows them to continue planning for the future.

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It is a major shift in a company's mindset that has the potential to generate dramatically higher value - but which also involves deep changes throughout the company, requiring a thorough business model transformation.