Shaping the everything-as-as-service economy
1 INDUSTRY LINES ARE BLURRING
In the past, industry segments were clearly defined and largely static.
Whether distributing products, selling software, or delivering in-house IT support, each partner on the supply chain had a distinct role.
With the advent of the as-a-service-economy, more and more companies, regardless of their core activity, are opening up new lines of services business. They are creating divisions or business units for services/MSP business and growing their ecosystem accordingly
An example of this is Schneider Electric, who moved from being a manufacturer of electrical accessories and appliances, to being a leader of managed energy service provision and automation*.
1. First came EcoStruxure, the IoT architecture, which was key in the value proposition of the company’s channel partners.
2. Second came EcoXpert, the go-to-market and partner program for Schneider Electric and EcoStruxure. Essential in the broader partner ecosystem of Exchange
3. Finally came Exchange, the platform connecting it all with partners. This also provided the tools to make it a business accelerator for partners, for Schneider Electric, and also for EcoStruxure.
Although traditionally it was just MSPs who delivered services, in today’s XaaS economy a holistic approach prioritizing service delivery – not product sales – is fundamental to the growth of ecosystems.
(*i-SCOOP – “Schneider Electric Exchange: a thriving digital business platform and ecosystem” 2021)
2 THE SUPPLY CHAIN IS BECOMING MODULAR
The next key industry change is the transformation of the supply chain from a linear, tactical support system into a strategic part of any organization.
During the COVID pandemic, with a global lock-down and worldwide disruption to traditional supply lines, the shift from boxes to bytes became a necessity.
An example of this is Spanish telecommunications giant Telefónica who recently announced their new business model*. They plan to become a true ecosystem, using a modular approach, ‘miMovistar’.
Telefónica have partnered with a US telemedicine & virtual healthcare company for their health package, with Prosegur for their security / insurance package, and with MSFT and Xbox for entertainment services.
High-value service modules as opposed to individual products
On top of their communication & content packages, customers can now sign up for high-value service modules as opposed to individual products, uniquely personalized to each person.
This way, Telefónica can help customers build a package that best suits their needs.
The result of this evolution and expansion will lower churn and increase ARPU
*source: https://cincodias.elpais.com/cincodias/2022/05/04/companias/1651644786_021005.html
3 DECENTRALIZED DEVELOPMENT
The range and availability of apps and software products have exploded. The resulting widespread trend of decentralized app development means every industry partner now has the opportunity to become a solutions developer.
This fuels ecosystem growth. With a many-hands approach, entire ecosystems benefit from agile development. They also no longer have one single point of failure and are naturally less fragile.
One example of this is Akash Network (AKT)*. When traditional cloud storage providers have excess capacity, they can sell it on Akash Network’s blockchain-based marketplace to maximize the output of their unused resources.
Akash Network also strives for interoperability and is compatible with major existing cloud infrastructure and cloud-based apps. This increases partnership viability for major cloud service providers.
85% of Akash Network’s cloud services are leveraged from already existing and under-utilized data centers *
At its core, Akash is a decentralized, open-source cloud services marketplace and self-described “DeCloud for DeFi.”
*Akash Network | The Unstoppable Cloud
4 DEMOCRATIZATION OF TECHNOLOGY
The final trend shaping the future of ecosystems is the democratization of technology.
More and more people have the ability to co-create, understand, and expand their technology. As a result, we see more flexible subscription models, opening access to XaaS solutions and reducing barriers to entry for customers.
This all powers innovation and growth
An example of this is 4G Capital. It powers micro and small business growth to build economies and generational success. It strives to deliver highly accessible solutions, as disbursements and repayments are made via mobile money to provide instant working capital for traders and enterprises… (*Source: www.4g-capital.com)