As promised in yesterday’s post about lumpy revenues for OSS product companies, today we’ll discuss OSS professional services revenues and the contrasting mindset compared with products.
Professional services revenues are a great way of smoothing out the lumpy revenue streams of traditional OSS product companies. There’s just one problem though. Of all the vendors I’ve worked with, I’ve found that they always have a predilection – they either have a product mindset or a services mindset and struggle to do both well because the mindsets are quite different.
Not only that but we can break professional services into two categories:
- Product-related services – the installation and commissioning of products; and
- Consultancy-based services – the value-add services that drive business value from the OSS / BSS
Product companies provide product-related services, naturally. I can’t help but think that if we as an industry provided more of the consultancy-based services, we’d have more justification for greater spend on OSS / BSS (and smoother revenue streams in the process).
Having said that, PAOSS specialises in consultancy-based services (as well as install / commission / delivery services), so we’re always happy to help organisations that need assistance in this space!!Read the Passionate About OSS Blog for more or Subscribe to the Passionate About OSS Blog by Email