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Date: July 21, 2015

Author: Julia Stegman

Description:
Technology companies are investing tremendous energy to expand and innovate their annuity-based offerings. These profitable, recurring service revenues are making increasingly important contributions to top-line revenue and margin growth.

The objectives of this year’s survey were to provide insights on questions that are top of mind for SRG Members, including:
  • For cloud computing models, how is the industry progressing with selling premium support offerings? Which service attributes are getting the most traction? And how are these support offerings priced?
  • How quickly are technology companies evolving their portfolios to include the new category of offerings called “adoption services." Are adoption services offered for free or on a fee basis? And how are they packaged and priced?
  • What is the evolving role of the technical account manager and customer success manager to make the pivot toward service offerings that help customers achieve their outcomes?
  • How are premium/platinum maintenance and support offerings differentiated from basic maintenance and support offerings? What are the new service attributes emerging in the market? How prominent are proactive, preventive, and predictive service capabilities?
  • What are the trends with managed service offerings? And how are these offerings differentiated from premium/platinum support services?
  • What are the common service marketing practices across the industry, including market analysis, pricing methodologies, packaging of offerings, and customer segmentation practices?
SRG members use the findings from this survey as input to their service portfolio planning process.

Applicable Disciplines:
Service Revenue Generation-Recurring

Keywords:
adoption services; maintenance and support contracts; managed service; service offer; service offer development; service marketing; premium support; fee-based offer; cloud services; proactive service; differentiation; offer

Functional Areas:
Finance;Marketing;Operations;Partner Management;Sales;Strategy

Markets:
Consumer Technologies;Enterprise IT and Telecommunications;Healthcare and Healthcare IT