Monday, March 27, 2006
"There are both advantages and drawbacks to a move to subscription licensing, Konary said. "Selling licenses via subscription increases the predictability of software revenue and makes it easier to demonstrate future health." At the same time, "moving to subscription revenue can have a negative impact on revenue and, ultimately, share price," she pointed out. "Unless a software vendor already sells via a subscription license, doing so will involve a transition to recognizing software license revenue ratably, over time."