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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

 
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