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Professional services play a minor role for most companies, with the median company booking P.S. revenues on new deals equivalent to 16% of first year subscription contract value. Median P.S. margins are approximately 22%. These results are consistent with last year’s results.
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The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.
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Three uses for the SaaS Guidelines
The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8