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I've been on the engineering side of sales for a number of years now. The "term" model and deferred revenue is a big push across all public organizations since
by windexh8er 8y ago
I've been on the engineering side of sales for a number of years now. The "term" model and deferred revenue is a big push across all public organizations since it bodes well on the balance sheet. The quick death of perpetual licenses for many products that started out in that world is here and rampant. Cloud drives the term model neatly and succinctly. Opex for the SaaS provider is well defined the margins are predictable and scalable. If you like buying your software with a license and having the flexibility my, unfortunate, perspective is your options will continue to be more and more limited unless customers start pushing back.
The other upsell strategy is bundles and ELAs. Sell your customer everything, even if they don't need it. This is done by tossing im the kitchen sink beyond the core product the customer actually wants. It's far better to report sales on products that don't actually sell well on their own and take pennies on the list price vs none at all. I'll refrain from name dropping here but the security vertical is a huge offender of these tactics and I feel as though more production IT/ops products and vendors are now going down this path.