Are most XaaS partnering models built from the ground up or transformations of existing programs?

Paul Szczepan
Paul Szczepan Sr. Global Director, Parnter Solutions EngineeringMember

With the growing market of XaaS and traditional product vendors making the accelerated shift to software sales, are most of the vendors transforming their existing programs to accomodate XaaS or are they creating a separate program for XaaS from the ground up?

Answers

  • StevenForth
    StevenForth Managing Partner Founding Partner | Expert ✭✭✭

    Very interesting question. I suppose the answer is both, or it depends.

    But in my own experience the answer is that they mainly have to be built ground up. Why?

    If it is a go-to-market partnership with channel partners, the value created by the partners, profit or revenue sharing and joint marketing activities are usually quite different. Marketing especially is likely to involve a lot of content co-creation and data sharing will be an issue (which may also trigger new data privacy issues that need to be addressed).

    If it is a services type partnership, again the type of service is likely to be quite different, the service provider may need new UIs, APIs and access to data and this is also likely to raise privacy issues.

    So the theory may be that one can adapt existing programs, in my experience the practice is that you are better off building a new and paying close attention to who creates what value at what point in the customer journey, content co-creation, data access and because of data access new privacy issues are likely to surface.

  • JeromePeck
    JeromePeck Sr. Director of Product Management TSIA Administrator | admin

    Thanks, Steven! Very insightful. @Andréanne Young and @Josh Garrison — This question seems right up your alleys. Any additional insights here?