Judging by the profits of Uber Technologies Inc., Netflix Inc. and other businesses that replace asset ownership with on-demand services, consumers are buying (or leasing) into the subscription economy. The trade-off for foregone ownership is freedom, according to Tien Tzuo (pictured), founder and chief executive officer of Zuora Inc.

Businesses operating on the subscription model need as much flexibility as customers demand from their services, Tzuo stated during the recent Zuora Subscribed event in San Francisco, California.

“In this new world, businesses need freedom too,” Tzuo told Jeff Frick (@JeffFrick), co-host of theCUBE, SiliconANGLE Media’s mobile live streaming studio. (* Disclosure below.)

Subscription means businesses must experiment and rejigger customer experiences much more frequently than they might with one-off sales. Often, legacy information technology architecture is not cut out for this cadence of change, Tzuo explained. Enterprise resource planning systems that many companies rely on are too rigid and linear to allow competitive, on-the-fly upgrading, he added.

Proofs of concept exceed expectations

At the conference, Zuora presented “a post ERP view,” Tzuo said. This consists of a new set of systems specifically targeted for success and growth in the subscription economy. Demand for nonlinear tools like these is increasing as subscription catches on even in unlikely places, Tzuo added.

Fender Musical Instruments Corp., for instance, has begun experimenting with subscription services to encourage and retain beginning musicians. This marks an evolution for the subscriber service model; several years ago most of Zuora’s customers were Software as a Service companies, Tzuo explained.

“Did we think that we would have Ford showcasing their electric bikes here or Caterpillar showcasing their autonomous vehicles?” Tzuo asked. Zuora always believed in the subscription economy, but stories from companies like these provide proof of how far its come.

Watch the complete video interview below, and be sure to check out more of SiliconANGLE’s and theCUBE’s coverage of Zuora Subscribed 2017. (* Disclosure: TheCUBE is a paid media partner for Zuora Subscribed 2017. Neither Zuora Inc., the event sponsor, nor other sponsors have editorial influence on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE