Most software companies depend heavily on their services revenue

The Association of Support Professionals published a new benchmark study for maintenance and professional services. The study is based upon a hundred public software and technology companies. ASPs findings were that post-sale services now contribute more total revenue than product and license sales for most high-end software companies. Specifically,

  • In a typical company post-sale services now generate 51% of the revenue,
  • Maintenance has a gross profit margin 83% (median), and
  • Professional services (custom development, consulting, and training) has a 23% margin (median).

Source: Asponline.com. Maintenance & Services Ratios. Research Report, Asponline.com, October 2012.

http://www.asponline.com/maintsvc12.html