Hopkins-based Digi Intl., pushes new subscription product to boost revenue

Ten years ago when Chief Executive Ron Konezny started at Digi International, the software technology company’s revenue came only from device sales.

Now, the Hopkins-based business generates some revenue from services, but Konezny has been pushing for even more recurring annual revenue streams to help improve Digi’s margins and customer retention rates. The company’s newest suite of products, Digi 360, could do just that.

In the company’s last quarter ended June 30, annual recurring revenue was $113 million.

“We think we can grow that 15% annually as we continue to emphasize Digi 360 and other types of offerings,” Konezny said.

The subscription-based end-to-end service will help clients maximize the benefits of Digi’s “Internet of Things” (IoT) with state-of-the-art devices, software, system design, deployment services, remote management capabilities and expert support. Konezny said Digi 360′s design aims to give companies more of two invaluable assets: time and risk reduction.

Digi 360′s monitoring functions, Digi Remote Manager, can help customers diagnose and repair issues remotely. But if the issue requires a service call, Digi Remote Manager can help assure a technician arrives with the right equipment and tools to fix it.

In general, Digi mainly connects IoT devices that serve the industrial economy, including connecting equipment as diverse as elevators, solar farms, traffic signals or datacenters. Digi is introducing its 360 product as infrastructure spending increases, more industrial devices are connecting to the internet and the IoT economy continues to expand.

“We’re in buses, trains. We’re in the intersections, helping control traffic lights,” Konezny said. “So all of that has the potential to benefit Digi, without a doubt. If there are things being deployed, that’s good for us.”