Anders Gustafsson on recurring revenue
From Anders Gustafsson, Zebra Technologies CEO: A Fortt Knox Conversation · · Fortt Knox
“Our business has become much more dependent on recurring revenue streams — roughly 25% of our revenues are recurring, from repair contracts to software as a service — and platform innovation (for example Android requiring more processing power) has accelerated hardware refresh cycles from four‑to‑five years to more like three‑to‑four years.”
On , Anders Gustafsson, Executive Chair at Zebra Technologies Corp, spoke about recurring revenue during Anders Gustafsson, Zebra Technologies CEO: A Fortt Knox Conversation on Fortt Knox.
About Anders Gustafsson
Anders Gustafsson, executive chair at Zebra Technologies, has discussed the company's focus on helping customers digitize and automate workflows, particularly for frontline workers in retail, healthcare, transportation, logistics, and manufacturing. He stated that the company's solutions are designed to help retailers execute omni-channel strategies, such as buy online, pick up in store, and that these trends, accelerated by the COVID-19 pandemic, represent a permanent shift in consumer behavior. Gustafsson also noted that the company has moved from a device-centric to a workflow solution-centric approach and that recurring revenue streams now account for roughly 25% of total revenue. Gustafsson has addressed supply chain challenges, including semiconductor shortages and elevated freight costs, stating that the company prioritized meeting customer delivery times by using air freight. He has also spoken about the company's approach to artificial intelligence, emphasizing a commitment to responsible AI development and deployment that is supported and informed by human decision-making. Regarding the 2014 acquisition of Motorola Solutions' enterprise business, Gustafsson described it as a defining moment that created a global leader in enterprise asset intelligence, noting that the company's board was intimately involved in the due diligence process.