No industry was left untouched by Covid pandemic, even though many sectors struggled to survive during pandemic. MSPs have found it more difficult to meet customers and prospect for new business, and while many have received a COVID19 dividend, their ability to foresee and predict longer-term revenue has been harmed as working patterns change.
Many software-as-a-service (SaaS) companies adopted recurring revenue business model which is one of the best ways of sustaining businesses and growing.
Many MSPs have already changed their offerings to match their customers' needs, making the migration to a recurring income plan successful. These companies have noticed the advantages and seek to shift more of their revenue to a recurring basis.
The SaaS industry was growing even before pandemic. The subscription-based economy benefited businesses, and a Gartner estimate predicted that SaaS revenues will reach $140 billion this year, up from $102 billion in 2019 before the arrival of covid pandemic.
Here's how a recurring revenue model might help an MSP in developing their business.