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Power Play: 5 Long-Term Benefits To Adopting Subscription Business Models

The subscription-based market has more than doubled every year for the past five years, according to Salesforce. Discover how one solution provider found a support system in Eaton to help them build new revenue streams.

The subscription-based market has more than doubled every year for the past five years, according to Salesforce. If this doesn’t push solution providers over the edge to adoption, they should find a support system to help them build these new revenue streams.

“Find a manufacturer that doesn’t only have a good support staff to help you with the hardware,” says Damon McClure, principal enterprise infrastructure consultant with 2uTEC, a solution provider that delivers networking, voice and data center solutions to its customers. “Make sure their approach for cloud-based is there and they can see the future as IT departments are changing very quickly.”

McClure is dealing with a similar challenge to many other solution providers in that their customers have siloed processes and fewer resources. “Customers are looking for something that’s simple, easy to manage and gives them a proactive approach,” says McClure.

Eaton makes it easy for partners to offer one-to-five-year software subscriptions on its Intelligent Power Manager and Visual Power Manager platforms. “Subscription models are much less about getting in and getting the project done and moving onto the next client,” says Mike Jackson, growth initiatives product line manager at Eaton. “It’s much more about getting into understanding the client, and then build a longer-term roadmap where you continue to expand your reach into that customer. Subscription is really what enables you to have that longer-term focus.”

Long-term recurring revenue is just one benefit to subscription-based deals. Partners also benefit from building their customer base, upsell and cross-sell opportunities, a business shift from reactive to proactive and breaking down bills to simple device cost per month. “We don’t have to worry so much about hardware sales month-to-month,” says McClure. “And when you get enough of those, it’s really easy to forecast sales forecasts. It just makes things easier across the board for our sales organization.”

McClure adds that demand for installation services has gone up 40 percent with customers who have used the Visual Power Manager platform.

In addition, customers can save more than $500 per device the first year with a subscription while partners can increase their revenue by $1,000 over five years. To learn more, go to

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