Research Report

Achieving Offer-Market-Sales Fit in the XaaS Revolution

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Not that long ago, most technology buyers were prepared to splash out a fistful of CapEx dollars with little downstream commitment from the vendor. In this traditional transactional world every customer was a good customer.

However, every technology company around the world has now accepted that this world is changing. There are three major signposts signaling this change:

  1. Overall technology revenues at the 50 largest publicly traded tech firms are down significantly (15% lower than at the start of 2012, according to the TSIA T&S 50).
  2. Customer expectations are rapidly shifting to OpEx-based purchasing.
  3. According to Microsoft, 80% of new technology spend will sit with business buyers by 2020.
In this new paradigm, it is essential to start building a customer relationship on the basis of value and outcomes delivered. While product management can segment, define, and build solutions with strong offer-market-fit, it’s imperative that sales can effectively sell the value to land these ideal customers for a long-term relationship and high CLV. We refer to this as offer-market-sale fit.

Authored By:

Martin Dove

Vice President, Subscriptions Sales Research, TSIA

Laura Fay

Vice Presient, XaaS Product Management Research, TSIA

Publish Date: April 3, 2019

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Peg Rodarmel, SVP, Subscription Services, Infor

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