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Companies like Netflix, Spotify, and Salesforce are just the tip of the iceberg for the subscription model. The real transformation--and the real opportunity--is just beginning.Subscription companies are growing nine times faster than the S&P 500. Why? Because unlike product companies, subscription companies know their customers. A happy subscriber base is the ultimate economic moat. Today's consumers prefer the advantages of access over the hassles of maintenance, from transportation (Uber, Surf Air) , to clothing (Stitch Fix, Eleven James) , to razor blades and makeup (Dollar Shave Club, Birchbox) . Companies are similarly demanding easier, long-term solutions, trading their server rooms for cloud storage solutions like Box. Simply put, the world is shifting from products to services.



About the Author

Tien Tzuo

Tien Tzuo is the CEO and cofounder of Zuora (NYSE: ZUO) , the leading subscription SaaS provider, with more than 1,000 customers worldwide. Zuora, which is foundational to companies in the growing Subscription Economy, was born out of Tzuo's experiences at Salesforce, a pioneer of the subscription model, where he was formerly CMO and Chief Strategy Officer. Headquartered in Silicon Valley, Zuora also operates offices in Atlanta, Boston, Denver, San Francisco, London, Paris, Beijing, Sydney and Tokyo.



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