Unlocking the potential of recurring revenue: A Q&A with Danny Davies of C&C Group

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Editor’s note: The following is a conversation with Danny Davies, president and CEO of C&C Group and master-level Building Automation EcoXpert™, and Justin Lavoie, VP of Channel Development for the Digital Buildings business at Schneider Electric. They discuss the opportunities and challenges system integrators face when adopting a recurring revenue model, the critical elements for success, and practical insights from the Building Recurring Revenue from Digital Platforms eGuide to guide system integrators toward sustained growth and deeper client relationships.

As the demand for smarter, more energy-efficient building solutions grows, system integrators face new opportunities—and challenges—in adopting a recurring revenue model. To delve deeper into this topic, I sat down with Danny Davies, President and CEO of C&C Group and a master-level Building Automation EcoXpert partner of Schneider Electric, to discuss how system integrators can effectively transition to and succeed with recurring digital services. Danny shares valuable advice and lessons learned from his extensive experience.

Exploring the recurring revenue model

Justin Lavoie: Let’s start with the big picture: for those unfamiliar with the concept, can you explain what recurring revenue means for system integrators?

Danny Davies: Recurring revenue refers to the steady, ongoing income generated from providing continuous services rather than one-off projects. This model offers stability, more predictable cash flow, and deeper, long-term client relationship opportunities. It’s about transitioning from being a service provider to a partner who continuously adds value.

Justin: What initial steps should system integrators take to transition to a recurring revenue model? Are there challenges?

Danny: The first step is to assess and digitize existing systems and processes to enable effective data capture and analysis. Capabilities like remote monitoring and data analytics set the foundation for proactive service offerings. The challenge often lies in just getting started—evaluating what’s already digitized and updating where necessary can feel daunting, especially with factors like decarbonization efforts and new tech integrations. However, beginning with digital tools that integrate seamlessly with your current infrastructure makes the process manageable and sets you up for building out your service model over time.

Finding the right approach for your operations

Justin: Speaking of digital platforms, what should integrators prioritize when choosing the right platform for their needs?

Danny: Great question. You need a platform that fits your operational style and can integrate seamlessly with your existing systems. For us, Schneider Electric’s EcoStruxure™ architecture was an ideal choice because it’s user-friendly and integrates well with our installed controllers and systems. It made starting easier and helped us deliver quick, actionable insights without extensive customization. Plus, support tools like Energy University provide ongoing, invaluable education.

Justin: We know that cost savings often draw clients initially, but sustaining their interest beyond the first year can be tricky. How do integrators show ongoing value?

Danny: This is crucial. Cost savings can’t be the sole reason for adopting these solutions; they’re more of an added benefit. The real value lies in the continuous insights and proactive approach that a digital service provides. With an analytics overlay, integrators can offer a “virtual technician” who monitors systems 24/7, makes recommendations, and identifies issues before they escalate. This proactive service optimizes performance and strengthens the integrator’s relationship with the client as a trusted advisor.

Justin: That proactive approach sounds like it requires a significant shift in how integrators manage their teams and resources. How do you handle that at C&C Group?

Danny: It’s a shift. The recurring revenue model pushes integrators to maintain continuous engagement, which requires the right mix of staff expertise and technology. We’ve built internal processes to support ongoing client interactions, from remote monitoring to strategic on-site visits. This ensures our teams are equipped to act on data insights efficiently. And, with tools like EcoStruxure and its monitoring capabilities, we’re prepared when we arrive on-site, making us more proactive and resourceful.

Helping your clients understand the advantages of digital services

Justin: What’s your strategy for introducing recurring services to clients used to one-off installations?

Danny: It’s definitely a change for clients accustomed to more traditional models. We “bake” digital services into upgrade projects, adding these capabilities during the transition from legacy systems to new digital solutions. This allows us to compile data and demonstrate value before the client even realizes it’s there. By the time we present it, they can see tangible benefits, which makes transitioning to a maintenance agreement that much easier.

Justin: Do you encounter misconceptions when clients move from legacy systems to digital ones? If so, how do you address them?

Danny: Yes, definitely. Concerns about cost and cybersecurity are common. Clients are understandably wary of change, especially if they see it as another expense. We address this by leading with enhanced security benefits—older systems are less secure, so upgrading offers peace of mind. Plus, having a partner like Schneider Electric, with their robust cybersecurity protocols, adds credibility. Education is critical here – IT departments often support these initiatives once they understand the advantages.

Justin: Finally, what lessons have you learned from offering recurring digital services to your clients?

Danny: My biggest takeaway is the importance of relationships. The data and technology are significant, but what truly makes this model work is building trust and maintaining open lines of communication. Engaging clients regularly to discuss data and make informed suggestions keeps the service offering relevant and valuable. It turns a transactional interaction into a partnership where you’re at the table for future decisions.

Embrace recurring revenue for long-term success

Adopting a recurring revenue model is essential for system integrators looking to harness the power of digital services. Download this expert sales guide, Building Recurring Revenue from Digital Platforms eGuide, coauthored by Schneider Electric and C&C Group to learn more about how you can leverage this approach to build stronger client relationships and drive sustainable growth.

EcoXperts are the enablers of net-zero buildings

The EcoXpert Partner Program is unique and comprises a best-in-class, global ecosystem of expertise. Trained and certified by Schneider Electric, EcoXpert partners digitize and electrify our world for a more sustainable future.

The path to net zero is about delivering solutions for sustainable, resilient, efficient, and people-centric buildings. For our EcoXpert partners, this unveils immense growth opportunities through the transition to end-to-end portfolio sales that will resolve our customers’ most critical needs. For our shared customers, this means that together with our EcoXpert partners, we will drive the building industry transformation and help our customers survive and thrive today – and tomorrow.

Discover more about Master EcoXpert partner C&C Group and how they create recurring revenue.