In many cases, different rules apply in product, software and service sales. Lately, I’ve noted that the true game changer is selling — and buying — Software as a Service. Simply said, Software as a Service (SaaS) means that you get access to a software application running somewhere in the cloud, instead of having it installed and managed by you at your own premises — an approach gaining popularity across industries and the way of the future.
I recently had the opportunity to review the “Electric Grid Managed Services Report – 2018” published by IHS Markit. There is no question that the report is excellent reading for anyone interested in service business in the energy industry. In their report, IHS Markit describes the key steps of AMI evolution, which inspired me to discuss the steps from the service business perspective.
When joining the Landis+Gyr EMEA organization years ago, I was joining a famous energy meter manufacturer known mainly for its high-quality smart meters and advanced software for collecting metering data. At the time, the term ‘service business’ was not a key word in the organization or in our industry in Europe, except in the Nordic countries where smart metering has been offered as a service since the early 2000's.