XaaS: How the channel can capitalise on the subscription economy
XaaS: How the channel can capitalise on the subscription economy
Time to read
4 minutes
Author
Nathan Marke
COO
Date published
February 2025
The channel is evolving, and the shift to Anything-as-a-Service (XaaS) has transformed how businesses consume technology. Customers now expect flexibility, scalability, and predictable costs, making XaaS an increasingly attractive proposition. For resellers and MSPs, this growing appetite presents a wealth of opportunities—but how can they best position their offerings to fully capitalise on the trend?
Recently, Comms Business invited Giacom to contribute to its feature on XaaS. Below, we share insights from our COO, Nathan Marke, on how resellers, MSPs, and distributors can maximise the opportunities presented by the XaaS revolution.
Why is XaaS growing in popularity?
We live in a subscription economy where convenience, access to the latest technology, and cashflow management are king. While parallels between B2B and consumer behaviours are clear, there are unique drivers within the B2B space that make subscription models particularly compelling. The pace of innovation and the growing need to mitigate heightened cyber threats are pushing businesses to prioritise modernity and reliability.
The demand from SMB customers to shift their ICT spend to subscription models is clearly there and quite understandable. These offer predictable costs and a strategic partnership with an MSP, replacing the unpredictability and higher total costs associated with upfront payment models. Subscription-based ICT solutions reduce unplanned expenses and downtime, providing a seamless “per user, per month” model that simplifies operations while ensuring access to up-to-date, secure technology.
How are channel companies changing their business models to succeed in this new era?
One of our key areas of focus is on guiding our partners through the transition to subscription-based business models. This process begins with helping MSPs recognise the significant growth and profit potential of cross-selling managed ICT solutions on a “per user, per month” basis. Once partners appreciate the value of this shift, we collaborate to map out the journey ahead. While the rewards are substantial, particularly when it comes to increased business valuations, transitioning to this model requires fundamental changes across the organisation.
We help in a number of different ways. A good starting point is working together to evaluate the various cohorts of customers the MSP has, then developing clear strategies to migrate these customers from legacy models to subscription. We help conceive and build compelling go-to-market propositions that align with their customers’ evolving needs. Simultaneously, we help partners build out new skills to support critical growth areas where expertise may be lacking.
Another essential aspect of this transition is developing the always-on managed services offerings that underpin subscription models. Most critically, we help partners to look in depth into their business processes to understand how software and automation can underpin the shift from one-off sales to subscription services, ensuring efficiency and scalability for long term growth.
What technologies are driving as-a-service offerings?
Software is the foundation of all as-a-service offerings, with other technologies existing solely to support and enable its functionality. The benefits of moving software to an XaaS model are significant, including continuous access to the latest software available, and seamless integration within a coordinated data framework and the wider software environment. This shift provides businesses with a more unified and efficient ICT environment.
SMBs are very interested in the opportunities presented by machine learning and AI, and this is a key accelerant behind the shift to cloud and aaS models. These technologies rely on accessible and well-integrated data stored in the cloud to deliver maximum value. Businesses with their data locked away in on-premise environments will struggle to get value from AI. MSPs play a crucial role in enabling this transformation by ensuring that their customers’ applications and data are cloud-ready, secure and well-connected. This foundation allows emerging AI solutions leverage data effectively, ensuring that AI works for SMBs and drives business success.
What innovations are you seeing across the as-a-service market?
The as-a-service market is rapidly evolving with several transformative innovations. AI-driven analytics are enabling businesses to unlock deeper insights and make more informed decisions. The integration of IoT devices is enhancing data collection and analysis, providing real-time insights that drive efficiency and innovation. Additionally, the development of highly customisable service packages is allowing businesses to tailor solutions to their specific needs, improving customer satisfaction and cultivating stronger relationships.
These advancements are redefining what MSPs can offer, enabling them to deliver greater value to their clients and boost customer satisfaction, while still being competitive in a rapidly changing market.