How Tech Companies can Implement a Cloud-Based Business Model


Hardware and Software technology providers face a common issue:  How to further monetize their existing customer base and increase competitive differentiation in order to grow profitability and market share.

Many companies approach this with a "razors and razor-blades" strategy by aggregating and distributing their partners' complementary services, their own subscription/usage-based services, and/or 3rd party developers' add-on offerings to up-sell to their existing customers.  But typically they face a myriad of challenges around how to extend their existing infrastructure and operations to support a cloud-based delivery model:

  • Providing self-service ordering and provisioning for their customers.
  • Enabling multi-tiered and global distribution via existing and new channel partners.
  • Automating billing for usage or subscription-based products and services.
  • Integrating with existing internal services including ERP, CRM, order management and others.
  • Royalty and payment reconciliation to content providers and channels.
  • Supporting multiple currencies, languages and time-zones.

This provides tremendous benefits including:

  • Increase customer retention and profitability.
  • Reduce cost of sales, royalty management and 3rd party provider settlement.
  • Drive new revenue streams leveraging a cloud-based business and delivery model.
  • Grow partner loyalty and sell-through revenues globally.
  • Streamline sales operations and channel enablement.


As an example, one of our customers is a large electronics manufacturer who has created a “develop, deploy and distribute” application development and delivery ecosystem that distributes third-party apps to their customers. By enabling developers to develop, certify and distribute apps across a wide variety of device APIs and SDKs, their customers are able to access a growing catalog of innovative apps, while driving a differentiated user experience by enabling a rich development and distribution ecosystem.

If this seems relevant to your company's situation, then you may find the following white paper to be useful: DevOps to AppStore Automation for 3rd Party Developer Ecosystems

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