Research Report

The State of Service Revenue Generation: 2019

Transformation is alive and well for enterprise IT, industrial equipment, and healthcare IT companies.

In fact, it’s in full force with the intensity and speed of change exponentially increasing over the prior year. Leaders and employees are going 80 mile per hour with their hair on fire in order to keep pace with the market.

At TSIA, we observe four significant business model transformations underway:

  1. From on-premise to XaaS business models.
  2. From unprofitable to profitable XaaS business models.
  3. From hardware-centric to hardware-plus software-plus services business models.
  4. From generalist/horizontal orientation to industry verticalization.
We will wager that your company is undergoing at least one, if not more, of these transformations. All four of these transformations create opportunities to infuse profitable, predictable recurring service revenues into your business model.

This publication articulates on the trends with growing recurring service revenues including XaaS subscriptions as well as maintenance and support contracts. It also shares business challenges and planned research for 2019.

Authored By:

Julia Stegman

Former Vice President, Service Revenue Generation, TSIA

Publish Date: March 24, 2019

TSIA is well worth the investment. This is the one place where you can come and get a fusion of ideas that you can then marry up to the goals and objectives of your organization and boil that down into several actionable plans that you can implement over the next 6 months to a year.

Peg Rodarmel, SVP, Subscription Services, Infor

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