Reselling licenses does not yield a high-value business.
Let’s say you’ve been reselling XaaS apps licenses at $50 per user per year with a 20% reseller commission. As a license-only business, you will generate only $50,000 in annual gross margin even after the sale of 5,000 licenses.
Clearly, the value of any XaaS application or hosted service is not in its direct contribution to your bottom line. The value is in using hosted apps and services as a foundation for building high-value IT solutions that you strategically select, integrate, customize, and support as a managed service.… Read more