Just as streaming platforms like Netflix revolutionized entertainment, the concept of selling enterprise architecture (EA) as a subscription service is transforming the way businesses access, utilize, and leverage cutting-edge resources. From a technology perspective, we refer to EA as the infrastructure, application, and management of IT components.
The subscription economy is not only changing how organizations run applications but also reshaping how industries approach innovation and growth in a more inclusive, sustainable, and flexible manner. Small and medium-sized businesses now have access to tools and resources that were previously out of reach. As this trend continues, it is important for businesses to adapt and capitalize on opportunities while navigating various challenges, such as security.
Democratizing technical innovations
Gone are the days when businesses needed to make enormous initial investments in hardware infrastructure, followed by the time-consuming process of setting up and maintaining the required technology. Public and private clouds have enabled businesses to access advanced computing power, storage capabilities, and data management tools on a pay-as-you-go basis. This shift has opened the doors to businesses that might have been limited by budget constraints and lack of expertise.
In the software-as-a-service (SaaS) industry, infrastructure operations are a critical part of delivering reliable software services to customers. Many SaaS companies also rely on third-party service providers to handle some or all of their infrastructure, leveraging the know-how and resources of these providers to optimize their operations and improve the quality of their services.
SaaS platforms typically provide subscriptions so companies can pay for what they use while receiving regular updates and new features. This allows small and medium-sized businesses to gain access to tools and capabilities that were once the exclusive domain of tech giants. Smaller players are empowered to utilize complex applications without draining in-house resources or requiring large upfront costs.
As a business customer, you can acquire subscriptions tailored to your specific needs, allowing you to access resources for a designated period of time. This flexibility not only reduces financial strain but also offers the agility necessary to keep up with and respond to market fluctuations.
Managing resources wisely
Service providers can offer infrastructure to help you scale and respond to customer demand. They help determine the appropriate amount of resources needed to fulfill business objectives while avoiding unnecessary expenses.
Businesses often experience periods of increased demand, such as during the holiday shopping season. Managed service providers (MSPs) help anticipate and respond to these spikes in demand and plan for additional resources to ensure smooth operations during peak times. In turn, you can scale down resources during non-peak times, all while maintaining your subscription services.
As you define your business goals, MSPs work to understand these objectives and tailor the technical architecture to achieve these goals efficiently. You do not want to spend more than you need when you are using all these components. This includes calculating the appropriate number of servers, databases, and other resources necessary to handle the workload efficiently.
Economic and Environmental Sustainability
Beyond streamlining business operations, selling enterprise architecture as a subscription service can also contribute to reducing energy consumption as companies scale on demand. The traditional model of investing in on-premises infrastructure often resulted in overprovisioning, where businesses had to predict their peak resource needs and invest accordingly. This led to wasted capacity during non-peak times.
The subscription model, on the other hand, allows for resource scaling based on actual demand. Computing power can be utilized more effectively, reducing the need for redundant hardware and lowering energy consumption. Cloud computing is more energy-efficient and has 98% lower greenhouse gas emissions than on-premises data centers.
Reshaping industries through subscriptions
The global enterprise architecture market is expected to continue to grow to more than $1741 million by 2028. While the subscription-based EA model holds great promise, there are best practices to consider when implementing this strategy.
Businesses must ensure data security and privacy, selecting experienced providers with strong security measures in place. When you work with a third-party vendor, you should ensure that they have contingency plans to address service disruptions.
As the subscription economy grows, the market could become saturated with providers offering varying levels of service quality. Businesses should carefully evaluate their options, considering factors such as customer support, scalability, and the sophistication of available resources.
The positive impact of selling EA as a subscription service, however, is clear. With more service providers offering cloud solutions, there is more competition for your business. You, as the business customer, have more options, which can lead to better services and pricing.
Business customers of all sizes can get access to advanced technology and data storage capabilities through a subscription. This can open economic doors to developing nations, allowing business growth to more players who would otherwise not be able to participate in a digital transformation journey. This fosters a more inclusive and diverse tech landscape, where breakthroughs can emerge from unexpected corners of the business world.
You can focus on growing your core business without the traditional burdens of upfront investment and the complexity of building and managing infrastructure from scratch. By providing access to technological resources, selling enterprise architecture on a subscription basis, like Netflix, is driving change across industries.
Adonay Cervantes is a Digital Ecosystem leader, business success enabler, and IT evangelist with 23 years of experience in the industry. He has contributed articles about the digital economy evolution and has appeared in various publications, including Forbes. Adonay has participated in international technology competitions such as the Tele Management Forum (TM Forum), where his company has been awarded for innovation-driving projects. Today, he is serving as Global Field CTO at CloudBlue, where he is responsible for managing and driving value from technology to partners’ businesses while driving innovation and thought leadership within his organization. In previous roles, he has served as Global Sales Director for Strategic Accounts, where he’s got a great track of winning strategic accounts and successfully expanding the global footprint of customers In the Telco, MSP, and Technology Vendors segments.