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Financial Data on Services Revenue and Margins for
100 Public Companies:
3D Systems
ActivCard
Actuate Corp.
Adobe
Advent Software
Agile Software
Altiris
American Software
Amicas (VitalWorks)
Ansoft
Ansys
Aspen Technology
Autodesk
BEA Systems
Blackbaud
Blackboard
BMC Software
Borland Software
Bottomline Technologies
Business Objects
Cadence Design
Chordiant
Citrix
Click Commerce
Cognos
Compuware
Convera
Cyberguard
Emageon
Embarcadero Technologies
Entrust
Falconstor
FileNet
Hyperion Solutions
i2
IDX Systems
Informatica
Intellisync Corp.
Interwoven
Intuit
JDA Software Grp.
Kronos
Lawson Software
Macrovision
Magma Design
Manhattan Associates
Manugistics
MapInfo
MatrixOne
McAfee
Mentor Graphics
Mercury Interactive
Merge Technologies
Micromuse
Micros Systems
MicroStrategy
Moldflow
MRO Software
MSC. Software
NetIQ
Novell
Nuance (ScanSoft)
Open Text
OpenTV
Openwave Systems
Opnet Technologies
Opsware
Oracle
PalmSource
Parametric Technology
Pegasystems
Peregrine Systems
Progress Software
QAD
Quality Systems
Quest Software
Red Hat
Renaissance Learning
RSA Security
S1 Corp.
SAP
Secure Computing
SS&C Technologies
SSA Global
Stellent
SupportSoft
Sybase
Synopsys
Synplicity
Tibco
Transaction Systems Architects
Ulticom
Ultimate Software Group
Verity
Viewpoint
Vignette
Vital Images
webMethods
Wind River
Witness Systems
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ASPonline.com >
Reports >
Maintenance & Services Ratios
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Maintenance & Services Ratios
Publication date: 8/06, 8/05, 11/04
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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
a third 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)
- Revenue recognition rules for services revenue
- How to design a management P&L for services
- The role of renewal and attach rates
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.
Join the ASP | ASP membership info
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