Flexera has announced a new recurring revenue engine to help companies accelerate subscription and recurring revenue growth.
FlexNet Operations is the first software monetization platform in the industry to include renewal management, supporting the growing subscription economy fundamental to Software as a Service (SaaS) and Internet of Things (IoT) companies as well as traditional software producers.
Gartner’s February 2017 Disruption in Software Business Models Creates New Opportunities for Monetization report states, “Technology strategic planners will find next-generation software monetization is not about protection, limited to IP licensing, but about growth from enabling new models with repeatable revenue streams.”
SaaS, IoT and traditional ISVs need as much visibility and insight into software renewals as into new customer acquisition. Growing recurring revenue increases company valuations. And higher valuations increase shareholder value.
Strong renewal rates play an important role in Mergers & Acquisitions, Initial Public Offerings, business growth predictions and strategic planning. Many producers don’t have the right process and technology in place to effectively manage the renewal process. So, they have churn and lost revenue. Or, they miss opportunities to fix customer problems before the customer seeks out a new solution.
Not to mention that without effective renewal management, producers will struggle to effectively predict their recurring revenue.
“Many producers are nowhere near the 85-95 percent industry standard renewal rate – and if they’re not, it often can be attributed to an ad-hoc approach,” said Maureen Polte, VP of Product Management at Flexera.
“Flexera’s new recurring revenue engine lets producers predict renewals, and give customers visibility for their budget planning. This is especially valuable for IoT and SaaS industries that are driven by subscriptions business models.”
