Between 60%-90% of total R&D expenditures are for sustaining engineering activities to support products that are in maintenance mode. Yet margins on new products are significantly higher than on maintenance contracts. That presents two major challenges to software companies today:
- Freeing up resources to work on to morrow’s next hit product
- Maintaining margins, particularly for legacy and non-core products. This problem is even more acute for companies that promise “Maintenance for Life”
Symphony’s Product Line Management engagements help companies free key subject matter experts and budget dollars to focus on tomorrow’s products while simultaneously reducing costs and increasing quality and service levels on maintenance products as they move towards end-of-life.
To accomplish this feat, Symphony takes end-to-end responsibility for selected products and product lines from full product development lifecycle and support services to sales and other operational activities, aligned against agreed upon SLA’s while using a global delivery model to reduce the cost of operations.
To ensure that alignment is preserved between your objectives and our delivery, Symphony utilizes a number of contracting models including:
- Revenue Share
- Year-on-Year expense reduction
- Royalty structure
Testimonials
Dayon Kane Director and General Manager, BMC Legacy Product Business Unit
"The joint-development and incentive-based nature of our agreement with Symphony provides a strong advantage in the marketplace for BMC. Our customers will benefit from continued product innovation through co-development with a leading services organization, and BMC will maximize the business performance of selected products that are entering the mature stage of their life-cycle."
