Recurring Revenue

Recurring Revenue with Software Vendors

Recurring revenue is the Holy Grail for SaaS ISVs. Service management revenue has emerged as a way to leverage the latest innovations in technology, collaboration and hybrid business models to achieve new, predictable recurring revenue growth and customer retention. No service is more exciting or compelling than the adoption of cloud computing. At the same time, software vendors must ensure that their coveted customer relationships are not put at risk by offering a service that they can’t fully deliver at the highest level. Virtual Ark presents an opportunity for software vendors to establish recurring revenue streams by offering SaaS delivered through the cloud. For an investment in cloud capabilities to pay off, though, they have to find a solution that is sustainable for their customer base. They also have to identify technology providers that are reliable and that can provide the right fit for their customers. Virtual Ark supports a variety of architectural delivery strategies including public clouds, where resources are shared by multiple customers, and private clouds, which companies manage on their own equipment.

Software vendors work diligently to build, stabilize and maintain their recurring revenue streams. Gartner estimates the market for recurring service revenue has reached to $169 billion dollars, but despite the growing focus on services, most software vendors do not have the staff, expertise or technology partnerships to execute flawless, machine-like delivery of cloud applications. This causes many companies to lag behind with a “business as usual” – or a “business as 10 years ago” – approach. Cloud-based application delivery provides a foundation for building positive customer relationships, growth and satisfaction, leading to a culture of treating each customer relationship as a highly valued asset. Technology companies that prioritize recurring service revenue growth are set to transform renewals performance. Cloud-based models have opened markets to more vendors, more choices, rapid implementations and lower costs. The key to unlocking service revenue potential for enterprise applications is to leverage purpose-built cloud applications, combined with decision-ready data and business intelligence, tied together with expert human insight (or managed services). This is the fundamental value that Virtual Ark provides to its customers. By partnering with Virtual Ark, companies can activate and maintain their recurring service revenue stream, and continue to drive new business by delivering an enterprise application cloud-based business model.