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The Future of Managed Services and XaaS

Updated: Oct 12, 2023

Embracing Evolution

In the ever-evolving business landscape, one trend is rising above the rest – the shift towards outcome-based offerings. This transformation is ushering in a new era for Managed Services and Everything-as-a-service (XaaS) solutions. As companies strive to align their offerings with customer demands and market dynamics, combining Managed Services and XaaS presents a compelling vision for the future.

Expanding Horizons with Managed Services

The demand for outcome-based solutions is reshaping the business landscape. Companies are no longer content with one-time product purchases; they seek holistic, value-driven offerings that promise results. Managed Services is at the forefront of this transformation, extending its reach across diverse industries, from manufacturing to software and retail to financial services. This expansion simultaneously boosts customer satisfaction and operational efficiency, giving rise to a new era of service excellence.

The Unveiling of XaaS

At the heart of this evolution lies XaaS – it typically refers to Anything as a Service, Technology as a Service, and Everything as a Service. Examples include Software as a Service (SaaS), Data as a Service (DaaS), and Analytics as a Service (AaaS). The Technology and Services Industry Association (TSIA) defined XaaS as a product delivered within a subscription model, typically per unit per month and sold on an outcome basis. The subscription is wrapped in a Managed Services agreement and governed by Managed Services SLAs and is the most significant growing revenue stream within Managed Services.

The Shifting Landscape of Pricing

The pricing landscape is transforming its own. The evolution ranges from traditional fixed monthly fees to transaction-based and outcome-based models. This shift compels businesses to be experts in showcasing the value they bring to the market, solidifying their position as industry leaders in the outcome-driven economy.

Building a Foundation for Success

Navigating this transformative landscape requires a comprehensive strategy, including education, implementation, and organizational restructuring strategy. Critical components of this new framework include:

• Defining your Managed Services.

• Creating a robust organizational structure.

• Establishing essential Key Performance Indicators (KPIs).

• Developing new sales processes.

• Crafting a distinctive brand identity through digital marketing.

The Road Ahead

The Technology and Services Industry Association predicts Managed Services will continue its upward trajectory, with annual growth rates in the double digits and projected revenues surpassing $300 billion by 2027; businesses find themselves at a crossroads. The path to success lies in partnering with organizations that offer consultancy and functional expertise. Such partnerships enable companies to efficiently implement Managed Services across various business units, maximizing speed-to-market and ensuring a seamless transition to outcome-based, XaaS-enabled businesses.

Conclusion: Shaping the Future Today

Managed Services and XaaS convergence revolutionize how companies approach customer engagement and operational excellence. The adoption of outcome-based solutions sets the stage for unparalleled growth and innovation. As the business landscape evolves, companies that embrace this paradigm shift will thrive in the competitive market and lead the way into a future where value and results reign supreme.


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