Does Anyone Believe that Subscription Pricing is Going Away?

ERP CRM Software Blog

Like ( 0 )

Report

Really? You think people are going to abandon the cash flow benefits and flexibility of subscription pricing? I am not Steve, The Oracle; I cannot actually see the future. But I can make some pretty good guesses. And, it’s not going to happen.

Two big reasons already mentioned:

The cash flow benefits are particularly attractive to:

Small companies, or any company that is tight with cash (much better to invest in inventory to service customers, etc.)
New companies
Companies emerging from corporate restructuring or insolvency

The flexibility allows companies to dynamically match their system requirements to their business needs, a particularly good benefit for:

Growing companies
Shrinking companies
Companies with seasonal patterns of business
Companies that don’t want to hugely invest in a system of which they’ve only seen one or two demonstrations and possibly a seemingly endless PowerPoint presentation

Some software developers gladly offer subscription pricing. Some are avoiding it as if it’s the end of life as they know it; and it probably is.

If you are a software developer and say that you offer “subscription pricing”, but require 24 months to be paid up front, that is not subscription pricing. It’s not subscription pricing; it’s something I can’t print here.

Microsoft is continually adding value to their subscription licensing of Dynamics GP, SL, NAV, AX. They’re adding value by including additional functionality for no additional cost

It’s not going away.

Steve Chapman

By RoseASP, a major provider of hosted Dynamics solutions.

Does Anyone Believe that Subscription Pricing is Going Away? is a post from: ERP Software Blog