Hi DonatorI will do my best to describe my understanding here...

Hi Donator

I will do my best to describe my understanding here but happy also for someone in the industry to elaborate more. As a procurement professional I am more at the customer viewpoint on understanding why a customer would select consumption versus module-based pricing - particularly in a year of uncertainty due to COVID and its related effects.

As per their half yearly presentation released in Feb this year - the Nuix FY20 revenue split was 141m/28m for the subscription to perpetual licensing spread, for an aggregated revenue of 168m (rounding included here). Perpetual licensing as we all understand requires upfront payment. This will slowly be phased out as seen in the minimal presence within FY20 aggregated revenue. The industry is simply gravitating to SaaS as I'm sure you are aware.

The issue within the subscription license bucket of 141m is that these are made up of module-based (subscription) pricing and consumption (subscription) pricing. Module-based pricing (most popular usually) requires the customer to pay a 'fixed rate' on a monthly or an annual basis for accessing the various modules within the platform. Consumption based pricing may appear fairer particularly in uncertain consumption profile periods that COVID provided for most companies (mine included) during COVID. In this situation, the customer is paying for the exact amount of usage and not simply to access the modules within the Nuix platform. Obviously module-based pricing is easier to budget however I can understand the gravitation to consumption pricing over the most recent period.