In an era where businesses are rapidly transitioning to subscription models, understanding the intricacies of this economy is more crucial than ever. Lincoln Lincoln, the Vice President and Head of Global Sales & Customer Success at CloudBlue, shared insights on how companies can navigate the subscription landscape effectively during a recent interview. His perspective paints a clear picture of the essential components for success in this burgeoning sector.

CloudBlue is recognized globally as a leader in the subscription economy, helping businesses automate and transform their models to remain competitive. Lincoln’s extensive background, having previously worked with industry giants like EMC and Symantec, provided him with invaluable experiences that crystalized his understanding of market needs. His role at CloudBlue has allowed him to harness this knowledge to create a powerful platform aimed at supporting companies in the shift toward a subscription-based business model.

The core of CloudBlue’s offering lies in its monetization platform. According to Lincoln, this platform functions not only as a marketplace but encompasses everything that enables seamless transactions, including billing, provisioning, and metering. “A monetization platform includes the marketplace, but it’s the backdrop that’s critical,” he noted, highlighting that without accurate management of these elements, businesses could face severe repercussions. Inaccurate billing, for instance, has the potential to tarnish customer relationships, especially in sectors where transactions occur at scale.

When discussing CloudBlue’s customer base, Lincoln points out that they typically deal with telcos, managed service providers, and distributors. These industries require a robust system, given the volume of transactions involved. Lincoln explained, “If you’re only selling a handful of licenses, you probably don’t need a platform like ours, but when you’re dealing with massive volumes, it’s essential.” Automation becomes an invaluable asset, allowing companies to focus on strategy rather than getting bogged down in administrative tasks.

One of CloudBlue’s key differentiators is its extensive ecosystem, which includes over 450 pre-integrated products. This expansive array shortens onboarding times and cuts costs significantly for service providers. As Lincoln stated, “What makes CloudBlue different is the size of our ecosystem.” This pre-integration means that service providers can avoid the protracted and costly process of integrating third-party products, allowing them to launch their offerings more rapidly.

However, despite CloudBlue’s impressive growth and global reach, Lincoln acknowledges that many companies struggle to transition effectively into the subscription economy. He frequently witnesses service providers launching marketplaces packed with a vast catalogue of products, often resulting in failure. His advice is straightforward: start small. “Begin with a few anchor applications,” he suggests, emphasizing the need for teams to become proficient in selling these products before expanding their portfolio. This approach helps mitigate risks and ensures that businesses can build a solid foundation.

Another common pitfall is the over-reliance on digital platforms for sales. Lincoln emphasizes that while online marketplaces are essential, the human element is irreplaceable, particularly for smaller businesses. “A human touch is often required to make the sale,” he noted, suggesting that small businesses tend to prefer local, trusted providers who can guide them through product selection. This is a testament to the importance of relationship-building in securing sales and instilling confidence in the offerings.

Highlighting the strategic significance of reseller partnerships, Lincoln describes them as both customers and partners. “All of our customers are resellers,” he explains, underscoring the dual role CloudBlue plays in supporting large system integrators while maintaining direct relationships with many partners. This synergy allows CloudBlue to enhance its distribution network effectively.

Reflecting on the evolution of the industry, Lincoln asserts that service providers are increasingly becoming akin to software vendors, leading to a shift in CloudBlue’s product offerings. “We’ve seen a real shift with service providers becoming more like software vendors, developing their own IP,” he shared. This transformation has positioned CloudBlue at the forefront of innovation in the subscription economy.

As consumer expectations evolve, Lincoln highlights the role of artificial intelligence (AI) in delivering personalized experiences. Just as e-commerce giants like Amazon use AI to recommend products based on browsing history, CloudBlue aims to implement similar strategies in the B2B sector. By harnessing data analytics and AI, the platform can offer proactive recommendations, creating a tailored experience for service providers and their customers.

In concluding his insights, Lincoln provided key advice for businesses striving to succeed in the subscription economy. “Don’t try to do too much at once,” he cautioned. He encourages players in the market to focus on developing competence in a smaller range of products before scaling their offerings. This strategy can foster confidence in their sales capabilities and build a more sustainable growth trajectory.

As CloudBlue continues to pioneer solutions in the subscription economy, Lincoln’s message remains clear: understanding your market, nurturing relationships, and leveraging technology with a human touch are essential strategies for thriving in this competitive landscape.