What happens when traditional tech companies like Adobe, Cisco, and PTC start to shift revenue mix from an asset purchase model to a subscription model?
Top-line revenue shrinks as large, pay-up front deals are replaced by smaller recurring payments.
But, as we’ve learned from these trailblazers — corporate top-line revenue isn’t going away, it’s simply being pushed out. And as transition costs fade, your new recurring revenue base starts benefitting from compound growth effects, and market capitalization soars.
In this free chapter from his national bestseller “Subscribed: Why the Subscription Model Will Be Your Company’s Future — and What to Do About It,” Zuora CEO Tien Tzuo:
- Details how Adobe, Cisco, and PTC navigated the shift to subscription revenue with phenomenal results
- Explains the “swallowing the fish” revenue vs cost metaphor for the transitional period
- Provides concrete advice for transitioning your enterprise from a static, unit-based model to a dynamic, recurring revenue engine