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BluINFO

Financial Architecture of a BluBOX RMR Solution

Recurring Revenue

% of Installation

Required/Optional

Comments

BluSKY License

35% of Hardware

Required

this ranges from 20%-60% depending upon what is being quoted – used to WIN every deal

Support/Maintenance

9% of Hardware + Licenses

Required

should be required

Equipment Replacement Program (ERP)

15% of Hardware

Optional

option to retain customers (and RR) for a min of 7 years

Hardware-as-a-Service (HaaS)

24% of Hardware

Optional

includes ERP - should also include 9% Support bringing total to 33% – option to WIN customer that doesn’t have enough capital budget or prefers to work with operational dollars

Annual Increase

4% of total ARR

Required

should be required - covers increasing operating costs and product enhancements

Digital Credentials

2% of Hardware

Optional

should provide as an option

Supplies

2% of Hardware

Optional

should provide supplies-as-a-service as an option

Manpower Based Managed Services

2% of Hardware

Optional

least attractive RR but sometimes helps WIN deals – it should be used for that purpose