Professional Services and SaaS Private Offers

I heard this mentioned on a Marketplace Meetups sessions a few months ago but wanted to see if I could get some additional insight from the community...

What percentage of professional services can be included in a SaaS private offer?

A couple community members specifically shared that in a SaaS private offer you have to keep your professional services separate, however in some SaaS offerings professional services are part of the SaaS offerings and there was a percent of pro services that could be included in the private SaaS offering and it would be treated as an all in SaaS value and burn-down the customers commit spend/EDP.

Could anyone share their thoughts on or experience with this?

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Comments

  • jbm
    jbm Tackle Employee
    5 Insightfuls 5 Likes First Comment
    edited March 1

    Hi Kristin, it's best to keep PS at less than 50% of the overall contract. Since it's transacted as SaaS it must be understood the transaction as a whole will be taxed as SaaS not PS. It will also NOT burn down the customer's commits / EDP.