Become a Service-Based (XaaS) Business

It’s no secret why manufacturers and high-tech companies are driving business model innovation with service-based strategies, essentially selling outcomes, not products. The global everything-as-a-service (XaaS) market is projected to grow from US$545.35 billion in 2022 to $2,378 billion by 2029. In one study, IT companies said that XaaS helped them “create new business processes, products and services, and business models, and reimagine how they sell to their customers.”

During a panel discussion held at this year’s SAP Sapphire & ASUG Annual Conference Orlando, three industry leaders shared their XaaS experiences, including business drivers and results, lessons learned, and future strategies.

HPE: Broad Service-Based Mix Gives Customers Flexibility

Shifting customer expectations are behind the decision of most organizations to innovate with service-based offerings, and global infrastructure leader HPE is no exception. HPE provides customers with a range of software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS) offerings.

“Our industry is going through an incredible amount of transformation in terms of how our customers, from large enterprises all the way down to individual developers, consuming services and infrastructure,” said Dave Carlisle, chief technology officer of Global IT at HPE. “Having a broad mix of service-based options means that customers can choose what works best for

Why Word of Mouth Beats Traditional Advertising

When it comes to swaying consumers, nothing beats word-of-mouth advertising. When people hear recommendations from their friends and family, they’re more likely to follow up than when they simply come across an advertisement. That level of trust is something that simply cannot be bought in a paid ad, so learning to encourage your satisfied customers to spread the word can be a powerful tool for any small business.

Word of mouth recommendations outperform advertising

The power of word-of-mouth advertising was made evident in a well-known Nielsen survey, which found that 92 percent of people trusted recommendations from friends and family above all other forms of advertising when making a purchasing decision.

Family and friends recommendations graph

Furthermore, people tend to distrust ads. According to the study, fewer than half of all people still find paid traditional television, magazine and newspaper ads credible.

Paid advertising decreasing credibility graph

As for online customer reviews, 70 percent of people professed trust in them.

Trust in online customer reviews graph

“While brand marketers increasingly seek to deploy more effective advertising strategies, Nielsen’s survey shows that the continued proliferation of media messages may be impacting how well they resonate with their intended audiences on various platforms,” said Randall Beard, former global head of advertiser solutions at Nielsen, at the time of

Two thirds of SMEs have no marketing plan

After a long period of economic stagnation, a study of almost 2,000 decision-makers has found that 67% of businesses have no marketing action plan, and more than half don’t even have a business plan. 

The Marketing Maturity Report, by The Marketing Centre, asked people from hundreds of small and medium-sized businesses across the UK to mark themselves against 60 statements, to understand what companies are doing to grow their business.  

The majority of respondents said that their business currently has no way of establishing how marketing will actually contribute to achieving their business goals, with only a third of respondents saying that they have a marketing plan which produces regular, timely marketing activities.

The report suggests that marketers are executing “random acts of marketing”, which are not making the contribution to the business objectives that they should be.

Less than one in three (28%) said that they generate enough leads to achieve their business growth objectives, and only 40% have a CRM system in place which is used effectively across both the sales and marketing teams. 

On top of this, only 27% said that they set clear objectives when using specialist marketing services too, such as agencies, in a sign