Hardware Financing + Managed Services = Profitable Recurring Revenue
Service contracts are the lifeblood of value for technology companies. Without service agreements, profitable recurring revenue is as attainable as the Holy Grail. Just out of reach, and no real path to get there.
Mitch Miller, President of Dynamic Computer Solutions used to be among the As-A-Service doubters, “If you told me a few years ago I'd be writing five-year contracts with nearly a third of my customers, I would have told you that you're crazy!”
Miller started dabbling in Managed Services as break-fix, and eventually transitioned to annual service contracts. When he began including hardware in the monthly payment with GreatAmerica as the funding source, things began to really change for his business.
“Hardware as a Rental® (HaaR®) makes it so easy for my customers to get the technology they need, and not have any concerns about it going forward,” said Miller. Today, Dynamic Computer Solutions offers five-year agreements that include service and hardware.
By offering an all-inclusive Managed Services program, Dynamic Computer Solutions has not only built Monthly Recurring Revenue (MRR), but they have grown MRR every year since partnering with GreatAmerica. Dynamic Computer Solutions is also getting significantly more margin on financing hardware sold on a monthly payment, as opposed to cash, or upfront capital spend.
Miller attributes the new As-A-Service model in part to his MRR growth, and says he expects for it to perpetuate, “At the end of the 5 year contracts, we’ll recycle the equipment and start a new term.”
The new model is great for Dynamic Computer Solutions, but it is also a better system for their customers. “My customers appreciate paying one single invoice and not feel like we are nickel-and-diming them with every invoice,” said Miller.
Download the case study today to see Dynamic Computer Solution’s journey and results after transitioning to an As-A-Service model with GreatAmerica.
< Back to Blog List
- case study
- managed services
- monthly payment