Subscription-based software licensing has gone from a novel concept to a disruptive force to a mainstream business model. By 2015, 24% of all software revenue will be generated by subscriptions, according to research by IDC.
For software companies, subscriptions introduce a host of opportunities and challenges. Offering customers subscriptions to your software increases your competitive advantage and gives you a predictable revenue stream. However, subscriptions are more than just licensing. To really take advantage of subscriptions, software companies must be prepared to adapt their entire business—including finance, sales and marketing—to the subscription model.
But how do you manage critical areas of the business like revenue recognition, order management and billing? How do you structure and compensate your sales force to most effectively sell a subscription model? What techniques should you consider to reduce revenue leakage and ensure customer retention?
On Thursday, August 4, I will be hosting a NetSuite webinar with guest speaker Amy Konary, Research Vice President at IDC, to discuss how to adapt your business strategies to today’s new software revenue models. Amy will discuss how software licensing has evolved, and the considerations that you need to keep in mind to effectively transition your business to the subscription model. We’ll also be joined by NetSuite customer James Jones, VP of Business Planning and Analysis for KANA Software, who will discuss how KANA manages different software revenue models and the importance of automation. We’ll wrap it up with a discussion of how various software revenue models impact nearly every aspect of the business including finance, sales, marketing and customers, and look at how leading companies such as Groupon are leveraging the latest cloud technologies to create and adapt to new business models.
If you have a subscription software business or are thinking about adapting your current business, or just want to understand how this market is changing, then you won't want to miss this event! Sign up now for a reminder to the webinar, Adapting to Today’s New Software Revenue Models.