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Financial Data on Services Revenue and Margins for 100 Public Companies:

ACI Worldwide
ActivIdentity
Actuate Corp.
Adobe
Advent Software
American Software
Ansys
Aspen Technology
Astea
Attunity
Autodesk
Bitstream
Blackbaud
Blackboard
Blue Coat
BMC Software
Bottomline Technologies
Bridgeline Digital
Broadsoft
Broadvision
Bsquare
CA
Cadence Design
Callidus Software
Check Point
Cimatron
Citrix
ClickSoftware Technologies
CommVault
Compuware
Daegis (Unify)
Datawatch
Deltek
eGain
Epicor
Evolving Systems
F5 Networks
Falconstor
Fortinet
FundTech
GraphOn
Guidance Software
Informatica
Interactive Intelligence
Intuit
Jacada
JDA Software Group
Magma Design
Manhattan Associates
McAfee
Mentor Graphics
Merge Healthcare
Micros Systems
MicroStrategy
Mitek Systems
NetSol
Novell
Nuance
Open Text
Openwave Systems
Opnet Technologies
Oracle
Parametric Technology
Park City Group
Peerless Systems
Pegasystems
Pervasive Software
Procera Networks
Progress Software
QAD
Quest Software
Radview
RealNetworks
Red Hat
Renaissance Learning
Retalix
RightNow Technologies
S1 Corp.
Saba Software
Salesforce.com
SAP
Sapiens International
Scientific Learning
Selectica
Serena Software
SolarWinds
Sourcefire
SS&C Technologies
Symantec
Synopsys
Taleo
Tibco
TigerLogic
Tyler Technologies
Ultimate Software Group
Verint
Versant
ViryaNet
Vital Images
VMWare
    ASPonline.com  >  Reports  >  Maintenance & Services Ratios
 

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Maintenance & Services Ratios
Publication date: 9/11


Executive summary

Technology pundits are always on the lookout for “disruptive” changes in the software world, but they’ve mostly missed one of the biggest transformations of the last few years—the greatly expanded role of services. Though there are still major companies (notably Microsoft) that remain almost exclusively product-centric, most successful software vendors these days have adopted a business model that depends heavily on services. Among larger companies, services typically generate more than half of all corporate revenues; for powerhouse vendors like SAP and Oracle, the services ratio often exceeds two-thirds of revenues and a substantially larger share of profits.

Yet the large and growing role of services is often under-measured, under-managed, and under-invested. To provide some necessary benchmarks for the services side of the software business, the ASP has compiled current data from a hundred public software companies (all of which are named in the report, with data on revenues and services-related financials) on the performance of their services operations. In addition, we consulted top experts on services metrics and accounting issues to offer guidance on the fine points of maximizing services revenue and correctly tracking those revenues.

The ASP's Maintenance & Services Ratios report covers the following topics:

  • Revenue contribution of services to total revenues (percentage and absolute dollars)
  • Profit margin on services (percentage and absolute dollars)
  • Impact of company size (contribution and margin)
  • Maintenance contribution and margin (percentage and absolute dollars)
  • Professional services contribution and margin (percentage and absolute dollars)
  • The bundled subscription model
  • Revenue recognition rules for services revenue
  • How to design a management P&L for services
  • The role of renewal and attach rates
  • A financial model for launching new services
For those who want to explore the underlying data in more detail, the report includes an Excel spreadsheet that contains all the financial data used for our calculations.



Copies of the survey are free to ASP members in the members-only area.

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