Recurring Revenue Model, Recommendations and Next Steps
The response rates received from the surveyed cohort in this study indicate a relationship ambivalence between subscriber and provider that is close to that of a utility. This has implications for the customer lifetime value (CLV) expectations inherent in the Cloud Computing (CC) Software as a Service (SaaS) business model. In addition, a perceived subjectivity of the SaaS attrition or reduction decisions were found to be less impactful than might have been expected prior to the study. Specifically, we found that the SaaS provider’s capability of analysing and tracking meta-data usage patterns enables them to track subjective influences through an objective set of algorithms. The refined revenue renewal model encapsulates these findings.
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