We help Hardware & SaaS companies create winning pricing and packaging strategies.
Our hardware clients often aim to integrate their own or third-party software into their offerings to generate recurring revenue. This is usually part of a broader strategy to diversify revenue, boost customer lifetime value, strengthen relationships with end-users, gather usage data, and lay the groundwork for future products and ecosystems.
Clients often struggle to align the SaaS product with their existing organization. Sales teams and channel partners aren't equipped to sell SaaS, and the product is often given away to secure CAPEX deals. Finance departments face challenges with CoGS reporting and SaaS forecasting, while local P&L centers are ill-suited for a global SaaS model. Additionally, the OEM-to-user chain complicates data ownership and identifying the actual customer.
We’ve helped multiple hardware companies create truly integrated offerings and build out the organizational infrastructure to be commercially successful with SaaS.
We often help with:
- Strategy: how to think about SaaS both short & long term as a Hardware organisation.
- Value-based pricing: redesign pricing to capture value across types & sizes of customers.
- SaaS+HW Hybrids: build integrated product offerings across SaaS and Hardware.
- Sales: assist in building out a new SaaS sales organisation - or update the existing one.
- Forecasting & reporting: SaaS KPIs and forecasts that make sense for the Hardware organization.
- Channel: leverage existing channel partners to distribute SaaS.
- Value Differentiation: use SaaS to differentiate Hardware against low-priced competitors.
Issues we often deal with:
- Legacy SaaS: customer base already sold old perpetual software licenses.
- Early product: SaaS products in early and immature stages.
- Siloed P&L’s: execution and revenue recognition across regional geographies.
- Billing & entitlement: lacking financial infrastructure to sell SaaS.
- Traditional customer base: SaaS offerings for customers used to buying CAPEX only.
- OEM-to-user: data and business model issues across the value chain.
- Lack of SaaS skills: Organization lacks basic SaaS skills and understanding.
- RFI/Tender processes: sales processes with heavy constraints.
- Required free: requirement to provide basic software for free to operate hardware without subscription