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    Perpetual License vs. Perpetual Money

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    ramblingman
    Model that compares a hypothetical perpetual software company with its SaaS equivalent. Lots of parameterized assumptions for ad hoc analysis.

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    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd

    Perpetual License vs. Perpetual Money

    Uploaded by

    ramblingman
    7K views6 pages
    Model that compares a hypothetical perpetual software company with its SaaS equivalent. Lots of parameterized assumptions for ad hoc analysis.

    Copyright

    © Attribution Non-Commercial (BY-NC)

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    XLSX, PDF, TXT or read online from Scribd

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    Model that compares a hypothetical perpetual software company with its SaaS equivalent. Lots of parameterized assumptions for ad hoc analysis.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    7K views6 pages

    Perpetual License vs. Perpetual Money

    Uploaded by

    ramblingman
    Model that compares a hypothetical perpetual software company with its SaaS equivalent. Lots of parameterized assumptions for ad hoc analysis.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 6

    Perpetual Money vs.

    Perpetual License: Subscription, SaaS, and Perpetual Business Models

    1Q11 2Q11 3Q11 4Q11 1Q12 2Q12


    Perpetual Model
    Bookings
    License 0.5 1.0 1.5 2.0 1.0 2.0
    FYM 0.1 0.2 0.3 0.4 0.2 0.4
    MR - - - - 0.1 0.2
    Subtotal maintenance 0.1 0.2 0.3 0.4 0.3 0.6
    PSO 0.3 0.5 0.8 1.0 0.5 1.0
    Total bookings 0.9 1.7 2.6 3.4 1.8 3.6

    Revenue
    License 0.5 1.0 1.5 2.0 1.0 2.0
    Maintenance - 0.0 0.1 0.2 0.3 0.3
    PSO - 0.2 0.4 0.6 0.9 0.4
    Total revenue 0.5 1.2 2.0 2.8 2.1 2.7
    Growth 320% 120%

    Subscription Model
    Bookings
    New subscriptions 0.3 0.5 0.8 1.0 0.5 1.0
    Subtotal renewals - - - - 0.2 0.5
    PSO 0.1 0.3 0.4 0.5 0.3 0.5
    Total bookings 0.4 0.8 1.1 1.5 1.0 2.0

    Revenue
    New subscriptions - 0.1 0.2 0.4 0.6 0.7
    Subscription renewals - - - - - 0.1
    PSO - 0.1 0.2 0.3 0.4 0.2
    Total revenue - 0.2 0.4 0.7 1.1 1.0
    Growth 467%

    Assumptions
    PSO as % of license 50%
    PSO conversion 85%
    License bookings growth 100%
    Maintenance rate 20%
    Maintenance renewal rate 90%
    Subscript as % of license 50%
    Subscript renewal rate 90%
    PSO as % of subscript 50%
    PSO conversion 85%
    All bookings last day of quarter
    PSO converts in next quarter
    Copyright © Dave Kellogg, Licensed Under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 United States Lice
    3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

    3.0 4.0 2.0 4.0 6.0 8.0 4.0 8.0 12.0 16.0
    0.6 0.8 0.4 0.8 1.2 1.6 0.8 1.6 2.4 3.2
    0.3 0.4 0.3 0.5 0.8 1.0 0.6 1.2 1.8 2.4
    0.9 1.2 0.7 1.3 2.0 2.6 1.4 2.8 4.2 5.6
    1.5 2.0 1.0 2.0 3.0 4.0 2.0 4.0 6.0 8.0
    5.4 7.2 3.7 7.3 11.0 14.6 7.4 14.8 22.2 29.6

    3.0 4.0 2.0 4.0 6.0 8.0 4.0 8.0 12.0 16.0
    0.4 0.5 0.7 0.8 1.0 1.3 1.7 1.8 2.2 2.8
    0.9 1.3 1.7 0.9 1.7 2.6 3.4 1.7 3.4 5.1
    4.2 5.8 4.4 5.7 8.7 11.8 9.1 11.5 17.6 23.9
    112% 108% 111% 108% 105% 104% 105% 104% 102% 102%

    1.5 2.0 1.0 2.0 3.0 4.0 2.0 4.0 6.0 8.0
    0.7 0.9 0.7 1.3 2.0 2.6 1.5 3.0 4.5 5.9
    0.8 1.0 0.5 1.0 1.5 2.0 1.0 2.0 3.0 4.0
    2.9 3.9 2.2 4.3 6.5 8.6 4.5 9.0 13.5 17.9

    0.8 1.0 1.3 1.4 1.6 2.0 2.5 2.8 3.3 4.0
    0.2 0.3 0.6 0.7 0.9 1.2 1.6 1.8 2.3 2.9
    0.4 0.6 0.9 0.4 0.9 1.3 1.7 0.9 1.7 2.6
    1.4 2.0 2.7 2.5 3.4 4.5 5.8 5.4 7.2 9.4
    252% 185% 154% 158% 139% 127% 119% 120% 115% 111%
    Share Alike 3.0 United States License
    2011 2012 2013 2014

    5.0 59% 10.0 56% 20.0 55% 40.0 54%


    1.0 12% 2.0 11% 4.0 11% 8.0 11%
    - 0% 0.9 5% 2.6 7% 5.9 8%
    1.0 2.9 6.6 13.9
    2.5 29% 5.0 28% 10.0 27% 20.0 27%
    8.5 100% 17.9 100% 36.6 100% 73.9 100%

    5.0 77% 10.0 67% 20.0 65% 40.0 64%


    0.3 4% 1.5 10% 3.8 12% 8.4 14%
    1.3 20% 3.4 23% 6.8 22% 13.6 22%
    6.5 100% 14.9 100% 30.6 100% 62.0 100%
    128% 106% 103%

    2.5 67% 5.0 51% 10.0 46% 20.0 45%


    - 0% 2.3 23% 6.5 30% 14.9 33%
    1.3 33% 2.5 26% 5.0 23% 10.0 22%
    3.8 100% 9.8 100% 21.5 100% 44.9 100%

    0.6 50% 3.1 58% 6.3 48% 12.5 45%


    - 0% 0.6 10% 3.3 26% 8.6 31%
    0.6 50% 1.7 32% 3.4 26% 6.8 24%
    1.3 100% 5.4 100% 13.0 100% 27.9 100%
    327% 141% 115%
    167.52

    0.18
    136.77

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