RUL rpmglobal holdings limited

Ann: Software Subscription TCV and ARR Update, page-29

  1. 417 Posts.
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    Without full visibility into RPM's client contracts and agreements it is very difficult to say how the maintenance scheme works, but would be a good question to put forward.

    I fully expect the subscription model to cannibalize the maintenance revenue and strongly disagree with @Jimmy_C. In general I would expect a subscription model (these days we often call this "Software as a Service") would provide a much higher level of support and more inclusions/updates than a perpetual licence.

    Any analogy to buying/leasing/renting is flawed, because you never 'own' software (you merely license it), but even at the most simplistic level a subscription model includes updates and improvements as they become available, whilst a perpetual licence means updates are optional and come with additional charge. This distinction is a key part of the subscription value proposition - known and stable costs.

    We should expect that the majority of support / maintenance income is linked to perpetual licence holders. Good news is that any licence holder can only 'get out of' their support / maintenance costs by buying a (more expensive) subscription.
    Last edited by nooneimportant: 15/06/20
 
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