The pay-as-you go method is one of the most appealing things about cloud computing. The concept enabled companies without large budgets to accomplish some of the same goals as their larger competitors. The need for large capital outlays is diminished and companies gain access to the capabilities they want, as vendors enjoy the benefits of software monetization.
While we often refer to this method of doing business as pay-as-you-go, the concept is truly servitization and it’s not new. The concept actually revolutionized the aircraft engine in the 1980s. General Electric and Rolls-Royce started selling engine “power by the hour” rather than focused selling on individual engines. Airlines then had better control over their budgets and their cash flows as they paid according to utilization of their planes. It eliminated the need to pay for everything up front.
In the software industry, it can be a challenge to fully leverage the opportunities in software monetization to drive the revenue sustainability needed to be successful. It totally changes the way companies need to manage conversations, licenses and relationships in order to ensure software monetization. Without the right approach, accountability and management, the opportunity could quickly fall short and put the manufacturer out of business.
As more and more professionals are demanding access to servitization and pay-as-you-go models, it’s critical that manufacturers are able to understand the opportunities and challenges so as to overcome the former and embrace the latter. The obstacle there is it can be a blur of information and dos and don’ts that may apply to one area and not the other. How do you make it through the weeds to understand the bigger picture of servitization and how it plays into software monetization?
Fortunately, Gemalto is offering some insights to help along the way. On Tuesday, December 13, 2016 at 11 am EDT, the company is providing a live webinar, What is Servitization in Manufacturing and Why Should Manufacturers Care? featuring Dr. Mohamed Zaki, Research Associate at Cambridge Service Alliance and Andreas Eichele, License Operations Manager at Kuka Robotics.
During this webinar, these experts will explore how the shift from manufacturer to service provider is redefining the traditional business model of the manufacturing world, and the reasons why manufacturers are making this shift. Register for your spot today to learn about the practical challenges of servitization within manufacturing, the types of services offered and the customer insights necessary to be successful in this new role. This is one event you won’t want to miss.
Edited by Alicia Young