SOURCE: ServiceSource

ServiceSource

September 14, 2011 09:00 ET

ServiceSource Tops 14 Million Technology Assets Under Management

Helps Leading Technology-Based Companies Increase Customer Loyalty and Improve Recurring Service Revenue

SAN FRANCISCO, CA--(Marketwire - Sep 14, 2011) - ServiceSource® (NASDAQ: SREV), the global leader in service revenue management, today announced that over 14 million hardware and software licensed assets are now under the management of its Service Revenue Intelligence Platform™ (SRI Platform) across over 100 customer engagements worldwide. With this milestone, ServiceSource is helping leading technology-based companies around the world manage over $6 billion in recurring service revenue.

"For over a decade, the SRI Platform has provided the insights to help drive increases in recurring maintenance, support and subscription renewal rates and revenue for leading technology-based companies around the world," said Mike Smerklo, chief executive officer, ServiceSource. "We would like to say thank you to our customers for helping us hit this milestone."

Based on a service-revenue-specific data model, the SRI Platform identifies opportunities for increasing revenue from maintenance and support engagements by aligning customer data with best practices and benchmarks. The Platform continuously measures transactional, analytical and industry data, which ServiceSource has developed over the last decade of serving customers and conducting approximately $15 billion in contract renewal transactions.

Why Service Revenue Matters

Today, the global spend on maintenance, support and subscription contracts in the software, hardware, healthcare IT and building systems verticals is over $250 billion, representing a large and growing opportunity for technology-based companies to increase recurring service revenue from these contracts. Despite this potential, however, most of these technology vendors overlook how important and essential renewals are to their business, leaving nearly $40 billion in service renewals on the table due to lack of purpose-built systems, expertise and accurate installed-base customer data and insights.

"The challenge associated with managing recurring services revenue is far reaching throughout an entire service provider or tech provider organization. First and foremost it starts with the data," said Tiffani Bova, Vice President, Gartner. "One thing I can't stress enough is that the Achilles heel in the channel, I believe, is absolutely either the lack of data or the wrong data associated with certain accounts, customers or partners. The cleanliness of data is important and imperative to have a successful maintenance program."

Datamonitor estimates that inaccurate customer data costs U.S. companies 30 percent of total revenues -- a massive $700 billion per year, which is only expected to increase.(1) With the current data overload, organizations are overwhelmed by the prospect of cleansing, organizing and reporting on their installed-base data. In fact, close to 50 percent of companies have yet to develop or implement a data quality plan.

ServiceSource helps organizations take a comprehensive approach to improving and managing installed-base data -- moving beyond fixing core data quality issues to using data-driven analysis and insight across the business. With better quality data and insights, organizations can operationalize knowledge and drive real-time decision-making.

Turning Data into Insight

Once organizations have an understanding of their data, they can focus on predictive analytics -- portfolio analysis, market analysis, operational analytics, modeling, statistical analysis, business intelligence and data mining. Predictive analytics transforms data into meaningful information that supports confident, knowledgeable decision-making and sales strategies.

ServiceSource makes it easy to unlock the potential and value of installed-base data, transforming it into information, knowledge and insight. Over 100 of today's leading technology-based companies are using ServiceSource to gain higher quality data and predictive analytics to better staff resources, improve quote efficiency, enable sales teams and channel partners and capture more renewal opportunities, resulting in improved customer and channel relationships as well as increased service revenue.

About ServiceSource
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, over 40 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™ with over a decade of renewals data, benchmarks and best practices. ServiceSource offers its 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.

For more information on ServiceSource, visit http://www.servicesource.com. To connect with ServiceSource, visit us on Twitter, Facebook, LinkedIn and YouTube.

(1) OVUM/Datamonitor 2010.

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