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Goodbye, plain vanilla software services

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By Sharon Eilon

 

Sharon Eilon is Head of WW Strategy and Solutions for HP Software Professional Services. Follow him on Twitter at @EilonSharon.

 

In Software Professional Services, one of the things we pride ourselves on is helping customers manage change. As Frost & Sullivan analyst Lynda Stadtmueller has written, “IT needs to develop a competency in change.” Exactly so, because IT has been nothing but change lately.

 

Just as IT is changing, so are the services organizations that work with in-house IT. Traditionally, you bought a software product and implemented it on premise with services around it. But now services can be customized and tailored for how you want to consume and pay for them.

 

This shift means that you have true choice when it comes to software services. In services, just like in transportation you can chose to buy and drive, lease and drive, rent and drive, zip-share and drive, or just take Uber or a taxi. All the options are there – you decide how you want to consume it.

 

So what does this new world of software services look like? And how can you derive the most benefit from it for your organization?

 

New ways to consume

Michael Garrett the head of HP Software Professional Services appears in a great video in which he talks about “services as a service.” For customers this means a proliferation of consumption-based models, subscription pricing, and managed services that reduce complexity. (Michael recently wrote a blog post about this that's worth checking out: "Skip the IT project, go straight to business outcome.")

 

These new offerings take vanilla services and add innovative ways for you to customize and configure them so they best fit your business objectives. Here is some of what we’re making available to our customers:

 

  • Added services: You’re consuming a SaaS product already, but you need some customization and additional services.
  • Added-value services: You’re consuming a SaaS product already, but you need some added value services on top of it to realize the value – such as management of change, adoption, or even testing services.
  • Outcome-based services: You want to achieve specific business outcomes with your software. So we work together to define what those outcomes are, how they’ll be measured, where your baseline is, and so on.
  • Bureau-based services: As it sounds – where you pay by the consumption of the value services or by transaction.
  • On-premise as a service: You want an on-premise software solution consumed as a service. So your managed service is being delivered as a service. (This is how we’ve set up our Managed Enterprise Monitoring service, for example.)

 

New ways to pay

There’s also considerable innovation happening right now around payment models. For instance, some (not a lot) of organizations are paying for services through revenue-sharing models. Some organizations are looking at risk-based models. Still others are exploring payment based on a predetermined percentage of cost savings.

 

One of our services customers is moving to a pay-by-transaction model. This marks a significant new way to consume services. Instead of paying for implementations, this customer is going to pay per transaction.

 

Models like pay-by-transaction open up the possibility for new service offerings. I predict we’ll see considerable innovation around offerings designed to help customers realize value more quickly. But new models also point to the need for increased partnership and communication with your vendor.

 

What do you think? Do these new models fit your needs? You can learn more by checking out HP Managed Enterprise Monitoring. Or contact HP Software Professional Services.

 

 

Related links:

HP Software Professional Services

Blog post: A service broker story that’s no fairy tale

Blog post: 3 success factors for pay-per-use SaaS

Blog post: 3 signs you’re ready to graduate from basic SaaS

Blog post: Savile Row SaaS

Ebook: Deliver business value with the New Style of IT

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