In our annual “State of” papers, we identify major trends in each TSIA research practice, analyzing key capabilities in response to shifting business challenges. As we enter 2020, concepts such as XaaS, cloud, IoT, digitization, and AI have moved from the mouths of prognosticators to reality in business practice, requiring organizations to operationalize service revenue models in new ways. Hardware companies are realizing the value of business solutions, inclusive of hardware, software, and services. Software companies are rapidly mobilizing SaaS subscription capabilities and are looking to monetize success services, and pure SaaS companies have identified the need to segment their success plans and renewal capabilities under customer success management (CSM). In many ways, service revenue organizations have been the benefactors of these industry shifts, and at the same time, the stewards of increasingly more important roles in technology companies. In TSIA’s Service Revenue Generation practice, we see several key trends, some continuing from years past and maturing over time, and some newly emerging. They are: - From hardware-centric to hardware-plus-software-plus-services business models. - From generalist/horizontal orientation to a vertical or segmented market posture. - From support offers to converged service portfolios. - From broad renewal coverage models to a segmented renewal strategy. All of these transformations create opportunities to infuse profitable, predictable recurring service revenues into your business model.