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Presidio CEO On AWS, Cisco, M&A And Biggest IT Bets
Mark Haranas
Bob Cagnazzi, CEO of $5.4 billion Presidio, explains his investments and strategy this year with AWS, Cisco, M&A and what’s driving the most sales growth in 2023.
What do you mean by ‘true recurring revenue’ and why is it better for growth?
What I mean by true recurring is, I’m not talking about when we resell a software license for three or five years—that’s not recurring revenue for us. It is for the manufacturer. We have maintenance, again, that’s recurring revenue for the manufacturer, not for us.
True recurring revenue means our cloud services and management contracts, and our managed services contracts are now about 20 percent of our revenue on a monthly basis and growing. They represent about 50 percent of our backlog.
We’ve continuing to move from a high-level project relationship, which we’ll always have, but move more to a service provider relationship. This is where we’ve got these contractual relationships with clients and we’re servicing them in a management standpoint, whether it’s across the entire platform— from legacy infrastructure up through cloud— or in collaboration, or in cybersecurity, or whatever it might be. That just makes us even sticky with our clients.
What we found with those clients is that revenue per client for people that are under those contracts, is probably about 30 percent higher than clients who are not under one of those contracts.
So our ability to sell across our portfolio and to penetrate deeper within the client group to gain greater wallet share, is enhanced by moving to more of the service provider relationship. This is kind of the concept that we had about five or six years ago. We’re really pleased that we’re starting to see that come to fruition over the last few years.
