SAN FRANCISCO, CA -- (Marketwire) -- 09/25/12 -- ServiceSource® (NASDAQ: SREV), the global leader in recurring revenue management, today announced the availability of Renew OnDemand, the first cloud application purpose-built to maximize recurring revenue. This end-to-end platform includes all of the tools, insights and best practices needed to maximize the renewal of subscriptions, maintenance and support contracts.
Recurring revenue has increased in importance, but is still underserved. Among a sample of the world's leading technology companies, recurring revenue accounted for 40 percent of total company revenue. This represented a growth of nearly 30 percent over the previous five years, as compared to only 14 percent average growth in new product sales. And based on estimates from industry research firm Gartner, roughly $30 billion is lost each year because companies use manual systems and processes, including spreadsheets, to manage this critical part of their business.
"In an economy where a 10 percent increase in customer retention can result in a 30 percent increase in the value of a company, no CEO, GM or vice president of sales can afford to ignore this opportunity," said Mike Smerklo, Chairman of the Board and CEO, ServiceSource. "Renew OnDemand is a game-changer for the industry. With our decade of experience in this market, ServiceSource is the only company with the global knowledge, best practices and benchmarks to deliver an application squarely focused on the growth of recurring revenue."
Adobe is among a list of global technology leaders that are the first to use Renew OnDemand to fuel the bottom line and drive innovation through increased recurring revenue.
"Three years ago, we implemented a strategy to unlock the potential of our recurring revenue, a move that has increased revenue, funded important research and development, and allowed us to help ensure customer success," said Lambert Walsh, vice president and general manager, Adobe Global Services. "We are very excited to leverage Renew OnDemand, which we expect to extend these benefits across our entire global business."
RenewOnDemand is a complete software suite that includes standard components such as Analytics, Sales, Operations, Installed Base and Channel applications. This enables customers and partners to:
- Increase recurring revenue and profitability. Arm sales and channel partners with the tools, analysis and best practices to maximize recurring revenue;
- Improve customer retention. With a better understanding of customer behavior and buying/churn patterns, companies can make better decisions about retaining installed-base customers;
- Gain business insight. With renewals-specific key performance indicators, embedded analytics and cross-industry benchmarking, Renew OnDemand gives companies a rich understanding of current performance and future potential.
"Many companies have recurring revenue streams that are often neglected because the sales organization is focused on selling new products," wrote Ovum analyst Carter Lusher in his September 2012 report. "The neglect is due to organizational issues and a CRM infrastructure that is not fundamentally designed to handle the unique processes and data management requirements for revenue renewals. This represents a huge mistake, as recurring revenue streams offer higher margins and profitability than new product sales."
Renew OnDemand is built upon a secure and scalable next-generation cloud architecture designed to easily integrate with CRM, ERP and other critical business applications. It includes a completely intuitive customer experience and user interface that provides anywhere, anytime access to renewals information on a PC or mobile device.
- To learn more about ServiceSource, please go here.
- Demonstration of Renew OnDemand, go here.
- Sign-up for a joint webcast with the Technology Services Industry Association (TSIA) on October 11, 2012 go here.
About ServiceSource, Inc.
ServiceSource is the global leader in recurring revenue management. The world's most successful companies rely on us to maximize subscription, maintenance and support revenue, improve customer retention and increase business predictability and insight. ServiceSource delivers results with Renew OnDemand, the world's only cloud application built specifically to manage and grow recurring revenue, which can be combined with our industry-leading services and unique pay-for-performance model.
With over a decade of experience focused exclusively in growing recurring revenue, our services and applications are based on proven best practices and global benchmarks. The Company is headquartered in San Francisco, and has over $7B under management for customers in more than 150 countries and 40 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.
This press release contains forward-looking statements, including statements regarding our Renew OnDemand Cloud platform and application, its capabilities, its overall benefits to customers, and its ease of integration with other third-party applications that our customers use. These forward-looking statements are based on the Company's current assumptions and beliefs, and involve risks and uncertainties that could cause our results to differ materially from those expressed or implied in our forward-looking statements. Those risks and uncertainties include, without limitation, the risk of material defects or errors in the Company's software offerings; the ability to integrate Renew OnDemand with other third-party applications used by our customers; our ability to protect our intellectual property rights; the risk of claims that our offerings infringe the intellectual property rights of others; changes in market conditions that impact our ability to sell the Renew OnDemand solution and/or generate service revenue on our customers' behalf; errors in estimates as to the renewal rate improvements and/or service revenue we can generate for our customers; our ability to adapt our solution to changes in the market or new competition; general political, economic and market conditions and events; and other risks and uncertainties described more fully in our periodic reports and registration statements filed with the Securities and Exchange Commission, which and can be obtained online at the Commission's website at http://www.sec.gov. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements.
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