Not All Revenue Is Created Equal, Part Ⅱ of Ⅲ

摘要

Maintenance revenue, typically billed annually as a percentage of software license value, can provide revenue stability and profitability for companies that mainly sell software licenses. Buyers value that predictability. However, when maintenance revenue is a small percentage of total annual revenue, it may reveal that few customers purchase maintenance. Alternatively, if maintenance revenue is a high percentage of annual revenue, it may be because sales have stagnated and there is little growth. Another issue facing companies transitioning to the SaaS model is that traditional maintenance revenues evaporate quickly as your business moves to a recurring revenue model.