The appeal of recurring revenue from subscription services has enticed enterprises across industries to take advantage of this age-old business model. No longer is it just newspaper or cell phone subscriptions, today it’s subscribing to services from car manufacturers instead of buying a car or to a medical imaging device company instead of buying the $100k+ device outright.
Sounds simple enough, but when you get into the nitty-gritty details of how you will support these new models, there is a lot to consider.
- Can you accurately process and calculate the usage of the service?
- Are you able to gate functionality based on the level of the subscription?
- Can you accurately recognize revenue for frequent changes in products and pricing?