Recurring revenue business models have proven to be more resilient in tough economic conditions.
There is one overarching assumption that we’re making as we write this 2021 edition of "The State of Subscription Sales" report, which is that technology companies must absolutely be entering into this new period with the primary objective of accelerating the growth of their subscription or XaaS offers.
There are three “megatrends” that the industry has been experiencing over the last 5 to 10 years and each of these three trends has been accelerated through 2020. It is commonly accepted across the industry that the sands have shifted, and we are now operating in a world where:
- Services revenue is growing; product revenue is flat or declining.
- Customers prefer subscription and managed services offers.
- Outcome-based customer engagement is an imperative, not a nice-to-have.
Each year, TSIA's team of research experts puts together a series of "State of" reports that include fact-based research and data from their engagement with the leading companies in the tech industry. Executives from companies large and small, including 80% of the Fortune 100 tech companies, rely on the findings, recommendations, and industry-validated trends and best practices in these reports to help them make strategic business decisions and achieve business outcomes, faster.
Download the full report today.