Selecting & Structuring the Ideal Service Model

Choosing between commitment and consumption models starts with clarity on business intent and desired outcomes.

Many software vendors looking to engage MSPs to sell and support their SaaS offerings are looking at the success of hyperscaler commitment models, believing they can impose the same conditions on MSPs: commit to prescribed spending over years to receive price concessions on the services they control and sell to end customers.

But vendors need to consider consumption (pay-as-you-go) and hybrid models as well. Which service model to implement isn’t a binary decision; it’s a strategic one.