pricing models for business process outsourcing saas service examples

This approach generates monthly or annual recurring subscription revenue for the business.

What is a subscription business model? Subscription-based models are a type of XaaS, where a customer subscribes to services or products – similar to renting – on an ongoing basis.

Today almost everything is available “as a service.”

What is everything as a service? XaaS is a broad category of business models in which users access products, tools, technologies, and/or services “as a service.” More traditionally and commonly, in the software industry, XaaS examples include software as a service (SaaS), platform as a service (Paas), and infrastructure as a service (IaaS), but XaaS is not limited to the tech space.

Here are some basic definitions of these important terms: By 2015, its market capitalization surpassed that of Walmart.Įach time Amazon expanded to incorporate new products or services, it adjusted or created new business models to support its strategy. Over 10 years (2005-2015), the company’s expansion included cloud computing (Amazon AWS), eBooks, and streaming services (Amazon Music, Amazon Video). Shortly after launching as an online bookseller in 1995, the company began to offer new services beyond books such as Free Super Savers Shipping. Often triggered by advances in technology and digitization, new business models such as “everything-as-a-service” or “anything-as-a-service” (XaaS) and subscription-based and are undergoing rapid adoption to help support the business’ strategic vision and ultimate success.Ī classic example of business model innovation is Amazon.

Business models vary based on numerous dimensions – such as key offerings, target market, company resources, and business value chain – and are a critical component in driving a company’s business growth strategy.īusiness model innovation occurs when existing models are modified, or new models are constructed.

A business model defines how a company creates, delivers, and captures value.

Pricing models for business process outsourcing saas service examples