The Zero-Sum Fallacy: ARR vs. Services

The article critiques the 'zero-sum delusion' that enterprise SaaS companies fall into when they treat professional services and ARR as competing for a fixed customer budget, arguing that customers actually budget separately for implementation services and view them as insurance on project success. Kellogg provides a framework for fixing this misconception through organizational changes including hiring rainmaker services leaders, creating separate P&Ls for services, engaging services early in sales, and adjusting compensation incentives.