Traditionally, services businesses have relied on billable hours as their primary source of revenue. However, many service-based businesses are starting to diversify with additional offerings to create multiple, complementary and more predictable sources of revenue. There are many ways firms can expand their revenue streams including reselling hardware or software; developing their own software; packaging and licensing their intellectual property; or through building new recurring revenue based on managed and subscription services. One thing is certain, a firm’s value and ability to effectively manage cash increases with the addition of more predictable, recurring revenue.
In this report, Service Performance Insight interviewed three firms (Open Symmetry, Golden Star Technologies and NetSuite) who have successfully added new, more predictable recurring revenue streams to their portfolio. We asked these companies questions around why, how, the benefits and lessons learned from expanding their solutions portfolio to include new managed services and subscription revenues.