In actual fact, there are many hybrid models that combine the sale of standard products and the provision of services to varying degrees in an attempt to reconcile the two trends. We can consider that the degree to which a company leans towards products or services is indicative of its own life cycle, and there is a widespread trend of a transition to services.
Consider a company that starts with a pure product model, obtaining high sales and large profits, but which discovers that it is going to be difficult to maintain this level of income. To ensure its continuity or in response to difficult economic times, it may begin to arrange service contracts with some of its customers, witnessing a significant slowdown in the company's rate of growth but obtaining greater long-term stability. The company may eventually put its entire emphasis on to services, having already saturated the market of its original product.
Of course, this is merely a theoretical example, and many companies will not complete or even begin this cycle at the same point.
Furthermore, the transition to services is not an easy one and can have negative consequences if not done carefully. Adopting a hybrid model in response to a crisis, without carefully considering the business strategy, can cause many problems for a product company.
In times of lack of revenue, the company may cede to pressure from different customers to develop highly specific product adaptations that are difficult to integrate with the main standard product. If this practice becomes widespread and the company intends to maintain its revenue through the sale of the standard product, it may encounter difficulties in maintaining compatibility between the new versions released and the specific adaptations for different customers. The work of debugging and development will multiply and can sometimes generate more expenses than revenue for the business.