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.
When we set up the TSIA Subscription Sales research practice it was in response to three “megatrends” that the industry has been experiencing over the last 5 to 10 years.
Each of these three trends has been accelerated through 2020 and 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.
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