Profile: ServiceSource International Inc (SREV.OQ)
6 Dec 2013
ServiceSource International, Inc. (ServiceSource), formerly ServiceSource International, LLC, is a service revenue management company. The Company manages the service contract renewals process for renewals of maintenance, support and subscription agreements on behalf of its customers. Its integrated solution consists of a suite of cloud applications, dedicated service sales teams working under its customers’ brands and Service Revenue Intelligence Platform. By integrating software, managed services and data, it addresses the steps of the renewals process including data management, quoting, selling and service revenue business intelligence. It operates in three segments: NALA (North America and Latin America), EMEA (Europe, Middle East and Africa) and APJ (Asia Pacific-Japan). As of December 31, 2011, it managed over 120 engagements across approximately 70 customers. On March 24, 2011, GA SS Holding LLC and SSLLC Holdings, Inc were merged with and into ServiceSource.
The components of the Company’s solution consist of its Service Revenue Performance Suite of applications, Service Revenue Intelligence Platform and service sales teams. The Company’s solution is designed to provide service revenue performance across different revenue models, distribution models, and segments within technology and technology-enabled healthcare and life sciences industries, including hardware, software software-as-a-service and industrial systems. NALA segment includes operations from offices in San Francisco, California; Denver, Colorado and Nashville, Tennessee related primarily to end customer in North America. EMEA segment includes operations from offices in Liverpool, United Kingdom and Dublin, Ireland related primarily to end customers in Europe. APJ segment includes operations from offices in Kuala Lumpur, Malaysia and Singapore related primarily to end customers in Asia Pacific and Japan. During the year ended December 31, 2011, 62% of its net revenue was earned in NALA, 28% EMEA and 10% in APJ. Its solution consists of Service Revenue Intelligence Platform, cloud applications and service sales teams.
Service Revenue Intelligence Platform
Service Revenue Intelligence Platform is a data warehouse of transactional, analytical and industry data that powers ServiceSource’s solution, provides insight into the business it manage on behalf of the Company’s customers, and enables it to deliver higher performance for those customers. An integral part of its renewals process is the data capture it performs to ensure it has documented the information about each transaction. The Company tracks and leverages the 100 key performance indicator (KPIs) and benchmarks in its intelligence platform across its business. The data has been analyzed across a number of dimensions, such as by region, customer segment, and contract dollar value, among others. Its intelligence platform is a service revenue-specific data model and benchmarking database that allows it to extract transactional data from customers and capture other structured and unstructured analytical data in a consistent manner. The intelligence platform improves with renewal the Company manages, customer it engages, and benchmarking study it completes. Supporting the intelligence platform is ServiceSource’s Data Management Engine.
The Company’s Data Management Engine extracts data from enterprise systems, such as enterprise resource planning (ERP), customer relationship management (CRM, billing and order management. During the Service Performance Assessment (SPA) process, it conducts interviews of its customers, analyze their historical performance and future opportunity, and evaluate their service revenue business on a number of dimensions. The Company utilizes its data and benchmarks from the intelligence platform to estimate the components of the business case and pricing model that it uses in discussions with customers. The intelligence platform includes the data warehouse that fuels the opportunity data, sales methodologies, metrics, and reporting dashboards that ServiceSource engineer into its applications.
The Company has developed a suite of applications, its Service Revenue Performance Suite, designed to optimize specific elements of the renewals process. ServiceSource’s Service Revenue Performance Suite includes Analytics Cloud, Service Sales Cloud, Channel Sales Cloud, eCommerce Cloud, Installed Base Intelligence Cloud and Dynamic Quoting Cloud. The Company’s Analytics Cloud serves as an analytics and reporting application. It provides customers with dashboards to view and analyze service revenue performance by customer, revenue tier, channel partner, product line and region. It also provides real-time visibility into expected results, conversion and up-sells, territory analysis, benchmarking and other trending reports. This tool enables the executive staff of its customers to identify trends and update sales strategies.
The Company’s Service Sales Cloud provides renewals analytics and pipeline management used by its service sales teams. It includes an analytics dashboard for ServiceSource’s teams to view their sales pipeline, top deals and overall performance. The Company’s Channel Sales Cloud provides channel partners and resellers with online access to their specific renewals opportunities and their performance. The application includes an executive dashboard that enables partners to view their renewals pipeline, their performance against key performance targets and how they are trending compared to previous quarters. In addition, an opportunity view allows partners to manage each upcoming renewal opportunity, find account, contact and asset information.
ServiceSource’s eCommerce Cloud provides self-service capabilities to end customers through a online portal. End customers can view their support contract information, modify their support coverage, obtain updated quotes, renew service contracts and secure on-line payment to its customers. The Company’s Installed Base Intelligence Cloud provides a single repository for cleansed installed base data and deep business intelligence to analyze the integrity and completeness of the data to flag anomalies and missing data elements and to identify cross-sell and up-sell opportunities. The application is integrated with the Service Sales Cloud and Channel Sales Cloud to provide resellers, distributors and sales representatives with a view of the installed base, including information on end customer purchases and usage. Its Dynamic Quoting Cloud provides an easy-to-use tool for sales representatives and channel partners to create and modify service renewal quotes.
Service Sales Teams
ServiceSource’s service sales teams consist of individuals with expertise in its customers’ businesses and selling under its customers’ brand. These teams are deployed in direct sales or channel enablement models, and in each case manage the key components of the renewals process. As of December 31, 2011, its service sales teams were selling in over 40 languages from five sales centers around the globe and are supported by a global operations support center. Its service sales teams are grouped into two areas: Global Selling and Sales Operations. The Company employs service sales personnel that interact directly with end customers to sell service renewals. They also provide active sales enablement, support and management of channel partners. ServiceSource provides service revenue forecasting tailored to fit its customers’ bookings, revenue targets and specific reporting requirements. It offers a business analytics team that provides analysis to maximize service revenue performance and provide insight into end customers, competitors and channel partners.
The Company competes with Oracle, SAP, salesforce.com, NetSuite, Accenture and McKinsey.
ServiceSource International Inc
634 2nd Street
SAN FRANCISCO CA 94107