Technology Blog

4 Paths to Flexible Consumption

4 Paths to Flexible Consumption


“As more and more customers demand more flexible payment models, the continued viability of many companies, and even entire industries, is being threatened. Those that fail to at least explore consumption-based offerings may end up on the path to obsolescence."(1)
You know that flexible consumption – also known as “pay-as-you-go” – is not new.  Utility industries, for example, have relied on this model for years.  Now this consumption based model is appearing in unexpected areas.
It’s coming to the technology industry – but is your organization ready to transition?
In a recent report, Deloitte outlined four paths to flexible consumption(1):

  1. Burn the boats – high risk >> When it’s clear that your customers are demanding maximum flexibility and adapting to a fully flexible consumption model is crucial for survival, your organization may dive in head-first – likely sacrificing short-term gains for long-term success.

  2. Straddle – give customers a choice >> While safer than fully transitioning to a consumption-based model, offering two models can be costly and confusing if not clearly articulated in your offerings

  3. Protect and grow – less risk, slower adoption >> Selectively offer flexible consumption completely separate from non-flexible consumption products as a way to protect legacy products and cross-sell into a consumption-based model.

  4. Wait and see – but stay vigilant >> If your markets haven’t started shifting to flexible consumption yet, it may not make sense to transition to a new model.But keep your ear to the ground, because you don’t want to be outpaced by competitors when the consumption-based model enters your markets.

Though the process may seem daunting, there are strategies that can help your organization transition to flexible consumption.
To learn more about this model and how First American can help your organization simplify the pathway to flexible consumption, visit:

(1). Deloitte. (2016). “Flexible Consumption Business Strategies”