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Recurring payments scale well in good times. No one really knows what’s going to happen in a recession. I suspect it won’t be pretty. Revenues will probably co
by themagician 7y ago
Recurring payments scale well in good times.
No one really knows what’s going to happen in a recession. I suspect it won’t be pretty. Revenues will probably contract just as well in the reverse direction and I suspect many customers will look to cut costs by eliminating monthly recurring expenses.
Perhaps recurring revenue business will be more resilient. I can see a path for that as well. But no one really knows.
- henshao 7y agoWhat kind of reoccurring microsoft expenses would an organization be able to shed? Can't really cut back on costs for word and excel/office suite. If your data is in Azure already, it would cost even more probably to move it all off and administer it yourself. Seems like they're pretty well locked in.
- klank 7y agoThere is efficient usage of the cloud and inefficient usage. How data is processed, moved around and things like fleet size can all greatly impact your final bill. Most companies don't optimize for cloud costs to great lengths.
- jacques_chester 7y agoYou can make the same argument for the old CDs-in-boxes model too. "If there's a recession, sales will go down". The difference is that recurring payments vastly improve your cashflow situation. Instead of giant pulses every 3 years you have a smoother pipeline of cash coming in all the time. Even if that pipeline shrinks, it still flows. It's far easier to plan for a 10% reduction that happens continuously than a 3 year plan with lots of "??$??" sprinkled throughout it. And far easier to recover from mistakes.