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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
Amicas
Ansoft
Ansys
Art Technology Group
Aspen Technology
Astea
Attunity
Autodesk
BEA Systems
Bitstream
Blackbaud
Blackboard
BMC Software
Borland Software
Bottomline Technologies
Broadvision
Cadence Design
Callidus Software
Chordiant Software
Citrix
ClickSoftware Technologies
Compuware
Datawatch
Digimarc
eGain
Emageon
Enliven Marketing Technologies
Entrust
Evolving Systems
Falconstor
i2
Imageware
Incentra
Informatica
Insightful Corp.
Interactive Intelligence
Intuit
JDA Software Group
Kana Software
Logility
Magma Design
Manhattan Associates
Mentor Graphics
Merge Healthcare
Micros Systems
MicroStrategy
Moldflow
MSC.Software
NetManage
NewMarket Technology
Novell
Open Text
OpenTV
Openwave Systems
Opnet Technologies
Opsware
Oracle
Parametric Technology
Peerless Systems
Pegasystems
Pervasive Software
Pharsight
Phoenix Technologies
Progress Software
QAD
QuadraMed
Quest Software
RealNetworks
Red Hat
Renaissance Learning
RightNow Technologies
S1 Corp.
Saba Software
Salesforce.com
SAP
Sapiens International
Scientific Learning
SCO Group
Secure Computing
Selectica
Serena Software
SPSS
SS&C Technologies
SupportSoft
Sybase
Synopsys
Synplicity
Tibco
TigerLogic
Tumbleweed
Ultimate Software Group
Vignette
Vital Images
Wind River
    ASPonline.com  >  Reports  >  Maintenance & Services Ratios
 

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Maintenance & Services Ratios
Publication date: 8/08


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.

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