Research Report

A Hardware Salesperson's Quick Guide to Subscription-Based Business Models in Tech

Hardware companies are having to reinvent themselves at an extraordinary pace to avoid obsolescence.

The technology industry is currently in the middle of the biggest change that it has experienced within the last 50 years. The catalyst for this transformation has, in many ways, been the emergence of new ways that consumers access technology and technology solutions.

As consumers, we are moving away from wanting to own things; we want flexibility, we want choices, and we want to avoid obsolescence.

As hardware companies move towards providing broader solutions that include hardware, software, and services, there is a lot of confusion about what “subscription-based-offer” means.

This paper provides a foundational understanding of:
  • Common definitions of subscriptions and XaaS
  • Difference between on-premise solutions and selling hardware as a service
  • How subscription-based offers affect hardware manufacturers

It is important to recognize that there are critical differences depending on which sector of the technology industry you are in and the content of this paper is tailored toward hardware manufacturers. I’ve also created a similar paper designed for Software Manufacturers and Technology Services Providers.

Authored By:

Martin Dove

Vice President, Subscription Sales Research, TSIA

Publish Date: July 2, 2019

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Peg Rodarmel, SVP, Subscription Services, Infor

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