Sat, Aug 23, 2014, 2:23 PM EDT - U.S. Markets closed


% | $
Quotes you view appear here for quick access.

ClickSoftware Technologie (CKSW) Message Board

  • thegunnerab thegunnerab Sep 18, 2013 4:11 AM Flag

    Cloud vs. On-Premise

    An on-premise license deal that is valued at $1M, will bring monthly subscription of $50K.

    Now lets compare the revenue stream of both options.

    License will bring $1M in revenues in the quarter the deal was booked and 18% maintenance fees every year after given the customer is using the software.

    Year 1: On-Premise 1,000K, Cloud 600K (12 months x $50K)
    Year 2: On-Premise 180K, Cloud 600K
    Year 3: On-Premise 180K, Cloud 600K
    Year 4: On-Premise 180K, Cloud 600K
    Year 5: On-Premise 180K , Cloud 600K

    So after 5 years, On-Premise total revenues will be $1.9M vs. Cloud total revenues of $3M....
    After 10 year, On-premise total revenues will be $2.62M vs. Cloud total revenues of $6M.....

    Short term pain, long term gain !!

    Few other unrelated comments:

    The AutoGlass deal that was announced has 1200 technicians. Based on Click's pricing of approximately $100 per technician, will bring in $1.2M in license revenue if its on-premise deal.

    The huge OI deal ($10M) from Q3 last year, should bring in close to $2M in maintenance revenues in Q3 this year.

    The Gunner

    Sentiment: Buy

8.37+0.22(+2.70%)Aug 22 4:00 PMEDT

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.