DAAS Mobile
Aug 24, 2021

Goodbye buying, hello “as a Service”.

You can see it everywhere—in 2021, more people than ever before are saying goodbye to purchase models and opting for subscriptions. “As a Service” models are on the rise and that really is an understatement. From giants such as Spotify and Amazon Prime to newcomers like Lyft, a growing number of people are opting for seamless services instead of static products. The world is changing from CAPEX to OPEX.

A short history of consumerism – From purchasing to subscriptions.

There are two reasons why society is turning to “as a Service” models:

  • Firstly, the economy is reinventing itself so that goods and services can be produced sustainably. 73 % of French say the environment  is a reason for choosing a subscription (source: End of Ownership 2020 study).
  • Purchasing power – Today, it is no longer considered absolutely essential to go into debt for consumer goods. Consumers want more flexibility when it comes to payments and prefer better quality at lower prices.

 

“As a Service“ and subscriptions in figures.

According to a Subscription Economy Index study (a Zuora study published in March 2021 on the consumer subscription trend, conducted in collaboration with Harris Poll), there was a considerable increase in “as a Service” and subscription models between 2018 and 2020.

Over the last six years, consumers have been between five and nine-times more likely to opt for a subscription model than another more standard option. This amounts to 430% growth over nine years. 72% of French people have signed up to at least one subscription (2.5 on average). Two years ago, the figure was 66%.

 

The reason? The convenience.

The fact that “as a Service” solutions are much more user-centric makes all the difference and explains their success. The model ensures implementation of scalable products and services are more practical and it’s easy to switch and extend subscriptions and select a premium offer.

Flexibility is key.

In short,“as a Service” gives end consumers the opportunity to always have the products and services that actually meet their needs.

The best possible answer to constantly changing user behaviour.

Our habits are changing and it makes sense that digitalisation is driving that. Companies now set great store in customer experience and are therefore turning to “as a Service” models more frequently. Thanks to the support of research and development departments, consumers are being given new options. It’s an endless loop and what is true today, will be different by tomorrow.

The same is true in business, especially when it comes to the digital transformation. Usage is, and always has been, a pillar of digital transformation. New products, new situations, etc. There are many factors affecting our usage.

Most recently, the pandemic. Coronavirus, quarantine and lockdowns in France and other countries have created a new normal with employees working from home, who would previously have been in the office. It’s not a given that companies should be flexible and constantly respond to new demands.

That’s why “as a Service” models are the best solution. As usage creates growth (optimised use is synonymous with performance) rather than being an obstacle to it, companies would do well to choose “as a Service” models.

Any questions? Our Device as a Service expert is happy to help.

 


Chloé Gardillou

Solution Consultant Modern Workplace & Mobilité

Phone: +33 (0)3 69 06 34 34

chloe.gardillou@bechtle.com

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Published on Aug 24, 2021.