Transforming a service company into a successful SaaS provider is more than just putting your tools in the cloud—it’s a fundamental business model shift that can dramatically increase your company’s value and stability. The recent announcement from TEN Holdings about their new Ten Events Pro platform offers a perfect case study for examining this transition. Their move from event production services to a cloud-based event management platform highlights the potential rewards—and considerable challenges—of such a pivot.
But how can service businesses make this leap successfully? What’s the real playbook for companies looking to build recurring revenue without alienating their existing customer base or losing their identity?
Why Service Companies Are Racing to SaaS Models
Service companies have traditionally operated on project-based billing cycles: complete work, send invoice, repeat. While this model can be profitable, it comes with significant drawbacks:
- Revenue unpredictability month-to-month
- Constant business development needs
- Scaling requires proportional staffing increases
- Valuations typically limited to 1-3x revenue
SaaS companies, by contrast, often command valuations of 5-15x revenue, thanks to predictable, subscription-based income and significantly improved profit margins. The financial incentives alone explain why so many service providers are eyeing this transition.
The TEN Holdings Blueprint: Gradual Transformation
What makes TEN Holdings’ approach to SaaS transformation particularly instructive is their methodical timeline. Rather than abruptly pivoting, they’ve created an Early Adopter Program beginning July 1, 2025, with full public release planned for early 2026. This gradual rollout accomplishes several critical objectives:
- Maintains revenue stability from existing service business
- Provides real-world testing with actual customers
- Creates a feedback loop for product improvement
- Builds anticipation and market awareness
CEO Randy Jones highlighted that Ten Pro will automate complex event production tasks that previously required significant manual labor, thereby creating both efficiency gains and higher-margin revenue opportunities.
Four Critical Steps for Service-to-SaaS Transitions
1. Identify Your Repeatable Processes
The most successful service-to-SaaS transitions begin by identifying which aspects of your service can be effectively systematized and automated. You’re looking for repetitive activities that:
- Consume significant team time
- Follow predictable patterns
- Deliver consistent value to clients
- Could benefit from standardization
For TEN Holdings, this meant examining their virtual and hybrid event production processes and identifying which components could be managed through a unified dashboard rather than requiring hands-on production staff.
2. Build With Your Existing Customers
Your current service clients represent your most valuable resource during a SaaS transition. They understand the problems you solve and have already demonstrated willingness to pay. Their involvement should include:
- Early-stage problem validation
- Feature prioritization input
- Beta testing and feedback
- Initial testimonials upon launch
TEN Holdings’ Early Adopter Program exemplifies this approach, giving select companies privileged access to shape the platform before its public debut.
3. Develop a Parallel Revenue Strategy
Successful transitions don’t happen overnight. The most effective approach involves running dual business models during the transition period:
| Phase | Service Revenue % | SaaS Revenue % |
| Initial | 95-100% | 0-5% |
| Early Growth | 70-90% | 10-30% |
| Transition | 40-60% | 40-60% |
| SaaS Dominant | 10-30% | 70-90% |
This gradual approach reduces financial risk while allowing your team to adapt to new working methods. TEN Holdings appears to be following this playbook, noting that significant revenue impact from Ten Events Pro isn’t expected until 2026.
4. Rethink Your Organizational Structure
Service and SaaS businesses require fundamentally different team structures and skill sets. Planning for these changes early prevents bottlenecks during expansion:
- Customer success teams replace some project management roles
- Product development becomes a core function
- Technical support becomes mission-critical
- Sales cycles and processes change dramatically
Many service companies underestimate the organizational restructuring required for SaaS success. The transition demands new hiring, training, and potentially difficult decisions about team composition.
Common Pitfalls in Service-to-SaaS Transitions
Underestimating Development Complexity
Converting service expertise into software is invariably more complex than anticipated. What works manually often requires significant rethinking to function in automated systems. TEN Holdings’ extended timeline—with public release in 2026—acknowledges this reality.
Pricing Strategy Miscalculations
Service businesses typically charge premium rates for custom work. SaaS products require volume adoption at lower per-client price points. This fundamental shift causes many transitions to falter when companies:
- Price too high, limiting adoption
- Price too low, hurting profitability
- Structure pricing tiers ineffectively
- Fail to account for customer acquisition costs
Neglecting Customer Success
Unlike service engagements where client interaction is constant, SaaS customers require structured onboarding and success programs to realize value. Without these systems, churn can quickly undermine your business model.
Funding Considerations for Your Transition
The capital requirements for a service-to-SaaS transition are substantial. Companies typically pursue one of three funding approaches:
Self-Funded Transition
Using service profits to gradually build SaaS capabilities offers maximum control but potentially slower time-to-market. This approach works best for companies with high-margin service businesses that can sustain reduced profit during the transition period.
Venture Capital
External investment accelerates development but dilutes ownership. Service companies with demonstrated expertise in growing markets (like TEN Holdings in the event production space) can attract significant venture interest, particularly if they’ve already begun product development.
Strategic Partnerships
Collaborating with complementary technology providers can reduce development costs and accelerate market entry. These partnerships might include technology licensing, co-development agreements, or joint go-to-market strategies.
Is Your Service Company Ready for SaaS?
Before committing to a SaaS transition, honestly evaluate your readiness against these critical criteria:
- Repeatable Methodology: Have you systematized your service delivery process?
- Market Validation: Are clients consistently requesting self-service options?
- Financial Runway: Can you sustain 12-24 months of reduced profitability?
- Technical Leadership: Do you have product development capabilities in-house or readily accessible?
TEN Holdings appears to have methodically addressed these factors before announcing their Early Adopter Program for Ten Events Pro. Their transition is targeting a specific pain point—complex event production—with a solution that promises both improved client experiences and better profit margins.
Conclusion: Planning Your Path Forward
The transition from service provider to SaaS company represents one of the most significant business model evolutions possible. When executed effectively, it creates predictable revenue streams, improves profit margins, and dramatically increases business valuation—as TEN Holdings aims to demonstrate with Ten Events Pro.
However, this transformation requires patience, capital, and a willingness to fundamentally rethink how your business creates and delivers value. By studying examples like TEN Holdings and following a methodical transition plan, service companies can navigate this complex journey successfully.
The most successful transitions share one defining characteristic: they maintain a relentless focus on solving the same customer problems, just through a different delivery mechanism. Your expertise and industry understanding remain your greatest assets—the SaaS model simply allows you to scale their impact more efficiently than ever before.