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FAQ: Frequency Holdings' Strategic Transition of ReachOut to SaaS Licensing Model
TL;DR
Frequency Holdings' ReachOut subsidiary shifts to SaaS licensing to gain higher margins and predictable recurring revenue while positioning for scalable market expansion.
ReachOut transitions from labor-intensive MSP services to automated SaaS licensing with AI cybersecurity, compliance tools, and predictive support for consistent delivery.
This SaaS model democratizes advanced cybersecurity protection for small businesses, making enterprise-grade security accessible and affordable for broader economic security.
ReachOut replaces traditional IT services with AI-powered cybersecurity licensing, transforming how businesses access protection through automated, productized solutions.
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Frequency Holdings is transitioning its ReachOut Digital Intelligence subsidiary from a traditional managed services model to a high-margin, SaaS-driven licensing framework designed to improve recurring revenue predictability and long-term gross margins.
The company believes the traditional MSP model is 'fundamentally broken' because labor-heavy service delivery has reached scalability limits, while cybersecurity and AI require a productized, predictable, technology-first approach with better revenue quality and automation.
The new model includes AI-powered cybersecurity protection, automated compliance readiness tooling (CMMC, HIPAA, NIST), AI-enabled business intelligence and automation modules, endpoint and cloud security platforms, and predictive support automation.
This shift reflects Jordan's 'Cybersecurity for All' mission by making advanced cybersecurity and compliance readiness accessible, affordable, and operationally realistic for smaller businesses through a scalable SaaS model.
The transition provides more predictable recurring revenue, higher gross margins, scalable delivery through automation, uniform results at scale, reduced operational overhead, and a customer experience defined by outcomes rather than billable hours.
The new model replaces low-margin, service-heavy MSP structures with clearly defined, technology-driven products that eliminate unpredictability of hourly labor, ticket volume, and reactive support models through standardized, automated delivery.
The transition is part of ReachOut's broader 2026 strategic roadmap, with the announcement made on November 20, 2025.
Rick Jordan, CEO of both Frequency Holdings and ReachOut, is leading this strategic transition, building on his decade-long mission to democratize cybersecurity protection for SMBs.
Small and medium-sized businesses (SMBs) that form the backbone of the U.S. economy will benefit most, as they can now access advanced cybersecurity and compliance capabilities without hiring large teams or deploying complex infrastructure.
The framework will deliver proprietary and third-party technology tools under a monthly licensing structure, combining AI-powered cybersecurity, automated compliance, and business intelligence with human-backed support that scales with technology.
Curated from NewMediaWire
