There are three sources of revenue for IT and Services businesses: services, software, and hardware. Subscription-based services are common for Microsoft Resellers in the Cloud Solutions Partner Program. Implementing the right billing strategies and models can significantly impact the business by providing predictability in cost and revenue, customer satisfaction, cashflow management, and reducing labor and operational burdens. Aligning sales and billing is crucial for creating a great customer experience. There are different billing and subscription strategies, such as term/contract-based billing, usage billing, and retainer billing. Billing methods can include vendor invoice-based billing or using a system to track and retain information for invoicing.
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