Recurring Revenue Model Through a Cloud Computing Channel
As software services become more ubiquitous, a sustainable subscriber base and its associated revenue are key to the Software as a Service (SaaS) provider’s competitive advantage. This chapter contemplates ‘what makes a subscriber renew’ by extrapolating the findings and outcomes of prior chapters in the presentation of revenue renewal taxonomy via a Cloud Computing (CC) channel. The law of churn is discussed before presenting an experience factors framework to help visualise the decision process followed by a subscriber when considering whether to acquire, renew or attrit a SaaS solution. Alternative revenue recognition models are then presented alongside their likely impact on the provider’s bottom line.
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