Peter Wolf: How To Build Services-as-a-Service

Where all this transformation is coming from is not a desire for vendors or people like myself to shift. It’s because the customers are leading us on this journey. – Peter Wolf

For IT solutions providers, the shift to the cloud and SaaS is more than just a product sales transformation. It is an opportunity for a services transformation as well.

I learned just what a services transformation looks like in a recent Channel Journeys podcast interview with Peter Wolf, founder of Azamba Consulting Group. Peter explains why and how he shifted his CRM practice from fixed time and materials service contracts to selling services-as-a-service.   

Key Take-Aways

Peter shared valuable tips for other partners looking to make services transformation. Here are three of my favorites:

• While transitioning to a subscription services model, keep your old business fixed price model going to help soften the initial cash flow impact.
• Aligning your services pricing to your vendors’ subscription pricing that your customers already understand will be well received.
• Charge a small up-front fee to prove customer commitment and continue adding more value to your service packages.

Take Action - One Thing You Can Do Today

If you are a solutions provider still doing time and materials contracts, take a few minutes to write down all the ways you and your company could benefit from switching to services-as-a-service. And listen to the complete Channel Journeys podcast to learn more about Peter’s services transformation.

About The Author

Rob Spee is founder and CEO of Channel Journeys Consulting and host of the Channel Journeys podcast. Rob applies his channel expertise to help clients create and execute channel strategies to accelerate revenue growth. His global channel experience spans from building channels at startups to vendors and distributors like Arrow, BMC, Carbonite, and SAS. Follow Rob on Twitter and LinkedIn.