Posts Tagged ‘Service revenue’

Could Your Customers Survive Without a Maintenance Agreement?

June 21, 2011

In a recent workshop focused on Defending Maintenance & Support Pricing we had a great discussion about the value of the maintenance agreement for technology services. The consensus was that customers are putting pressure on technology suppliers to lower their service prices and are threatening to drop their maintenance agreements all together. If this happened it would have a major impact to the finances of all tech companies. But, will it ever happen? Will customers decide to “self insure” and not pay the service fees just to reduce their total operating expenses? I don’t think so! If they do it could have catastrophic results! (more…)