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Perpetual VS Terms (Why? (Drive Recuring (monthly) revenue, Cement long…

- - - - Low take rates on maintenance + a low percentage of customers upgrading to the newest version = Opportunity upgrading their features to the newest version without having to pay “back maintenance"
      - Develop an offer for a previously untapped penetrated customer segment (“low value” segment,ie small customers for which current solution is “overpriced.” Under-penetrated segment, revenues are all additive and business risk eliminated
    - - Choice between perpetual and subscription pricing models. In any case, most customers will appreciate having the option to choose their model.
        Risk leave the breakeven point-> contractual options such as term requirements or “separation” fees Most customers don’t want to go through the hassle of conducting an RFP or switching a vendor.
        To train the sales team so that they can make customers aware of the benefits of the new subscription service. Examples of customer benefits include lower initial outlay, choice of payment options (i.e. CapEx vs OpEx), and flexibility to scale up as needs change.
        As well as benefits to the customer, marketing teams should develop value-based responses to potential customer questions, so customers feel confident in the move and know that their concerns have been addressed.
    - - Marketing teams will need three key pieces of information: 1. customer segmentation strategy; 2. the value proposition of a subscription offer; and 3. marketing collateral Finally, to prepare the marketing department for subscription pricing, you would need to update most of the marketing team’s assets, including the website material, customer portals, solution briefs, white papers, use cases, sales presentations, and product battle cards. Factor this effort into the plan