Hours are a safe, capped business
Selling development hours is predictable, cash-generative, and permanently capped. Revenue is a function of headcount, margins compress as competitors appear, and the day you stop selling is the day revenue stops.
A services firm sells time. A product firm sells the same thing twice.
Product is a different sport
It is not a services business with a product bolted on. The cash-flow shape inverts — you spend for a long time before anyone pays — and the marketing job changes completely, from winning a client to finding a market.
The half-way position most firms end up in
Building a product with the services team, in the gaps between client work. It almost never ships, because client work always wins the argument for attention, and the product is the thing with no deadline.
If you are going to do it, ring-fence the people and accept the services revenue you lose. The firms I have watched succeed at this treated it as a separate business from day one.
What it changes about positioning
Owning IP gives you something to be known for that is not a technology list. That is worth more than the product revenue in the early years, because it is the first genuinely defensible thing most services firms have ever had to say.