What is a Technology Enabled Service?

Your business is a technology enabled service if:

  • You consume and create technology whether it be physical infrastructure, hardware or software, which you design and configure into a solution delivered to an end user customer.
  • The service you deliver to your customer consists of bits and bytes, 1s and 0s. You don’t deliver any form of physical good to your customer.
  • Technology is the primary input into the service you offer, rather than labor.
  • The services you offer are available to your customers on-demand.
  • You charge using a recurring-revenue billing model, including subscription, transactional and other utility (volume of usage) based billing.
  • Your business’ success is dependent upon your customers’ success using your services.

The stack of technology-enabled services businesses include infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS) businesses. The “as a service” delivery model is transforming every business that designs and sells technology or consumes technology as an input. Consider the transformation taking place in each of the following areas:

Legacy and Tech-Enabled Delivery Models
CategoryValue-PropositionLegacy Delivery ModelTech-Enabled Delivery Model
SoftwareApplication featuresOn-premise softwareSoftware as a Service (SaaS)
ComputingProcessing powerOn-premise serversCloud Computing (IaaS)
Data StorageInformation warehousing and accessOn-premise storageCloud Storage (IaaS)

In each case, the value proposition was once delivered to the customer in the form of a one-time sale/license of a product; either physical goods or on-premise software. Technology-enabled services are replacing the physical/on-premise delivery model with on-demand delivery models. The benefits of the technology-enabled services model to customers are myriad.