Tzuo: This is the early innings of this shift. We’re incredibly excited knowing that subscription-based businesses are growing nine times faster than traditional businesses. But the percentage of the economy that’s on a subscription-based business model [is still low]. Caterpillar is a $50 billion company. Even if they billed $1 billion in subscription business, that’s still just two percent of the company. The same thing with cars; McKinsey predicts there will be $1.5 trillion of value created by connected devices, connected car services, and that’s where all the growth is over the next 10-15 years. That’s still less than 10 percent of the entire car industry.
There is a lot more innovation, a lot more assistance that companies want in terms of helping them figure out how to do this type of transition. Our goal continues to be to grow, to bulk up, to build the best technology. We see ourselves as having a chance to be a platform that drives the growth and success of all companies in the subscription economy and that’s what we’re focused on doing.
CIO.com: Is there anything that I didn’t ask you about that’s critical to people’s understanding of the company?
Tzuo: One thing for your readers to know is that we have a Subscribed Academy that is all about guides and best practices around pricing, packaging, go-to-market strategies, financial metrics. I have my BA from a business school. The concepts that you’re taught are anchored on the product economy and people are hungry for these new ways of thinking to drive these new economy ideas. Subscribed Academy has become the premier site for learning about these concepts and I encourage your readers to go there and check it out.
This story, "Why the subscription economy is the future of business" was originally published by CIO.