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TECHNOLOGY

Subscription Licensing Unlocks Spike in Technology Orders

The Challenge

The perpetual software license model, with its high initial cost and ongoing expense, is becoming harder to defend in a market increasingly reliant on software-as-a-service (SaaS). One major technology player saw an opportunity to increase its revenue by adding a subscription payment model to its traditional on-premises licensing.

Adding subscriptions meant changes to product and solution pricing, support and billing as well as the underlying technology for these processes. A new technology platform would be required to support these business model changes. 

The virtualization company engaged us to implement Cognizant’s S3P subscription billing system and to create a transition plan for this new revenue channel. 

Our Approach

We worked closely with the software company and took on complete ownership and management of the subscription process and development. We helped the company prepare for the new model through an emphasis on usage billing, discounting, automated renewals and support for complex workflows in the S3P billing system.

As the solution was being developed, our end-to-end partnership ensured that the company could fully focus on developing new and innovative virtualization software offerings for its customers.

Hybrid Consumption Model Provides the Best of Both Licensing Worlds

The capabilities that come with subscription billing have already delivered a major payoff to the technology company’s bottom line. New offerings and revenue streams reinforce the virtues of a hybrid software virtualization consumption model that benefits the software company, its channel partners and their customers.

We continue to support the company with customer onboarding and new offering launches, ensuring that this new business model can adapt and provide value for the foreseeable future.

500%

increase in orders

$250

average increase in subscription revenue

Increased

ability to integrate new product and service offerings

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