Competitors Financial Planning

Oracle preps for cloud ‘fiscal cliff’

Financial analysts have long predicted that the transition to a cloud revenue model for many traditional software companies is likely to be a messy affair. Moving from a license-based revenue model, where customers pay upfront and then a percentage of that as annual maintenance, to a subscription model based on steady monthly payments, inevitably involves something of a fall off a ‘fiscal cliff’ – unless, of course, there’s a formula in place to offset the more painful aspects of that transition.

Read the source article at diginomica

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