One-Time Gross Margin is stable at 39%, but Overall Gross Margin continues to grow with Recurring Revenue.
But the PSaaS impact is even greater on Gross Margin.
PSaaS recurring revenue is high margin and increasing every year. The growing PSaaS component causes the overall gross margin percentage to trend higher over time. So no matter what happens to hardware margins, BluBØX margin continues to grow. This is a very attractive proposition in a market which is being so strongly affected by commoditization.
In summary, customers do not see value in their purchases of hardware. But they see tremendous value in the security-related services that a provider can deliver, and that is what they are willing to pay for on an on-going basis.
So the formula is clearly to reduce the hardware content of the sale and increase the services that are delivered. This is exactly what PSaaS is about. The cloud is clearly the proper source for it, and differentiated software such as BluSKY is the tool.
We hope that this presentation of BluBØX’s PSaaS model properly explained how unique it is in the marketplace, how it is dependent on a properly architectured cloud-based software engine, and how it leads to vastly superior profitability and return on investment for the shareholder.
This concludes our presentation of PSaaS and the Recurring Revenue Model. Please select an additional topic in the PlayList.