We’re seeing a huge move toward consumers buying products on a subscription basis. It used to be just electricity, phone lines and magazines, but now everything from underwear to razors, auto usage and software can be bought by subscription. The “subscription economy,” as one player named it, really changes the way organizations do business.
Indeed, a new survey from CFO Magazine has revealed that 70% of CFOs say more than half of their revenue now comes from services, which includes professional services, subscription-based services, service-level agreements, managed services and usage-based contract. Almost a third (28%) of the CFOs surveyed indicate all of their companies revenues are services-related.