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ServiceSource Unveils Technology Vision for Recurring Service RevenueNew Cloud-Native Service to Unite Industry-Leading Expertise With Comparative Analytics and Connectivity Across the Renewals Ecosystem (November 15, 2011)
SAN FRANCISCO, CA -- (Marketwire) -- 11/15/11 -- ServiceSource® (NASDAQ: SREV), the global leader in service revenue management, today unveiled the vision for the next major release of the Service Revenue Performance Cloud that unites over ten years of focus and experience managing recurring service revenue with the advantages and data capabilities of tomorrow's cloud technology. The Service Revenue Performance Cloud utilizes the full power of the latest cloud-native design to help technology-based companies gain deeper insights into their installed-base customer data, optimize their recurring revenue streams, and strengthen their customer and channel relationships.
The announcement was made at SUMMIT2011, the Company's annual customer event and largest service revenue management gathering in the industry. On stage with CEO Mike Smerklo and, EVP of Products, Ganesh Bell, was Nick Howard, senior director of services operations, NetApp in support of the ServiceSource technology vision. Other product advisory customer executives from IBM, Red Hat and Xactly were also present. The new product will be the only cloud-native application for Service Revenue Management and is expected to be generally available in 2012.
"Since we implemented the ServiceSource Lifecycle Management Solution, we've seen stronger customer retention and a positive result on our renewals," said Essam Bashali, director of global renewals, Red Hat. "I've had the opportunity to participate on the ServiceSource product advisory board and am excited about the technology innovations they are working on for the next release of their cloud applications."
The Service Revenue Performance Cloud marks the next generation of the ServiceSource suite of cloud applications and promises to bring even more capability and performance to the renewals ecosystem, as part of the overall ServiceSource service revenue management solution. Key new capabilities demonstrated at SUMMIT 2011 include:
- Consumer-grade experience and connectivity
- Embedded Analytics for performance
- Comparative metrics and standard KPIs
- Mobile application extensions
- Multi-tenant platform with the latest cloud innovations
- Integration with leading ERP and CRM systems
Subscription, maintenance and support revenue can represent a significant percentage of very profitable revenue for companies and recurring revenue is increasingly becoming a critical growth driver for these companies. IDC(1) has forecasted the total market opportunity in 2011 from recurring service fees in the IT industry to be over $160 billion. Moreover, recurring revenue from subscription-based services is becoming the preferred business model across many industries because it represents a predictable and profitable income stream.
"Smart technology firms are recognizing that investing in their existing customer relationships and building recurring support maintenance and subscription revenue streams are the engines that will power their long term success," said Robert Mahowald, research vice president, SaaS and cloud services, IDC. "Learning to manage customer satisfaction in a way that builds recurring revenue has been a challenge for most technology OEMs. We believe there is a very solid market opportunity for solutions that automate the renewals process, enable OEMs to better understand their customer base, and help them to work more effectively with channel partners and end customers on optimizing revenue from service contract renewals."
In fact, IDC has recently published a new white paper, titled Optimizing the Recurring Revenue Stream(2), which shines a light on this very large and emerging technology solutions category, called Service Revenue Management. IDC's research uncovers and articulates the challenges companies are facing, including poor installed-base data quality and insights, inadequate investments in purpose-built technology to effectively manage the renewals process and a glaring lack of internal service sales expertise and focus. These shortcomings in implementing a Service Revenue Management solution can lead to leaving millions of dollars on the table as well as an erosion of end-customer satisfaction and loyalty to a vendor's technology solutions, according to IDC(3).
Download your complimentary copy of the new IDC white paper: Optimizing the Recurring Revenue Stream.
"Our vision for the Service Revenue Performance Cloud is designed to accommodate the growing diversity of recurring service revenue business models," said Mike Smerklo, chief executive officer, ServiceSource. "We are excited to unveil this new vision and continue working with our customers to inform our direction around the efficiency improvements, insights, and collaboration that will be available through our future technology platform."
The next generation of ServiceSource applications will take the Company's capabilities to the next level of performance and customer success. The Service Revenue Performance Cloud will be built to deliver more ecosystem productivity for end users, better access to renewal performance indicators and information for business executives and managers.
The application is expected to be generally available in 2012 and early pilot tests will begin at the start of 2012.
ServiceSource is the global leader in service revenue management, partnering with technology-based companies to optimize maintenance, support and subscription revenue streams, while also improving customer relationships and loyalty. ServiceSource helps customers increase service revenue contract renewal rates, on average, by over 15 percentage points and, in some cases, up to 44 percentage points. ServiceSource delivers these results via a cloud-based solution, combining its Service Revenue Performance Suite of applications with dedicated service sales teams, leveraging a proprietary Service Revenue Intelligence Platform of transaction data, benchmarks and best practices. ServiceSource offers its service revenue management solution on a unique pay-for-performance business model that enables a success-driven, shared-risk partnership. The Company is headquartered in San Francisco, and manages service revenue performance for customers across the globe in more than 35 languages.
ServiceSource and any ServiceSource product or service names or logos above are trademarks of ServiceSource International, Inc. All other trademarks used herein belong to their respective owners.
This press release contains forward-looking statements, including statements regarding the size of the market for service revenue management, our ability to improve the renewal rates and revenue results of our customers and their channel partners, and the overall benefits of our cloud applications such as our Channel Sales Portal. These forward-looking statements are based on the Company's current assumptions and beliefs, and involve risks and uncertainties that could cause our results to differ materially from those expressed or implied in our forward-looking statements. Those risks and uncertainties include, without limitation, errors in the estimated size of the market for service revenue management, changes in market conditions that impact our ability to generate service revenue on our customers' behalf; errors in estimates as to the renewal rate improvements and/or service revenue we can generate for our customers; risks associated with material defects or errors in the Company's software or the effect of data security breaches; our ability to adapt our solution to changes in the market or new competition; our ability to protect our intellectual property rights; general political, economic and market conditions and events; and other risks and uncertainties described more fully in our periodic reports and registration statements filed with the Securities and Exchange Commission, which and can be obtained online at the Commission's website at http://www.sec.gov. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements.
(1) IDC White Paper sponsored by ServiceSource, Optimizing the Recurring Revenue Stream, September 2011
(2) IDC White Paper sponsored by ServiceSource, Optimizing the Recurring Revenue Stream, September 2011
(3) IDC White Paper sponsored by ServiceSource, Optimizing the Recurring Revenue Stream, September 2011
Media Contact for ServiceSource:
Horn Group for ServiceSource
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