Impact of changing pricing strategy from perpetual to subscription licensing on an organization
Name
1055162181-MIT.pdf
Description
Full printable version
Size
2.66 MB
Format
Adobe PDF
Checksum (MD5)
f4db55eda82eec42d47c8f1a07cf7c4f
Author(s)
Jindal, Shweta
Advisor(s)
Catherine Elizabeth Tucker.
Date Issued
2018
Publisher
Massachusetts Institute of Technology
Abstract
There is an increasing trend in SaaS businesses to offer products and services via subscription licensing. According to a Gartner Study', 80 percent of software vendors will change their business model from perpetual licensing to subscription pricing by 2020. This implies that existing software companies will need to transition to subscription licensing to continue to stay relevant in the market. Strategy change of this nature is not straightforward, and requires a lot of key departments to come together to execute it well. This thesis focuses on understanding the impact of the shift to subscription licensing on external customers and internal departments (sales, marketing, product management & finance) of organizations that make such a change. Reactions of external customers are analyzed via a case study on Tableau, which recently moved to a subscription based model for its Business Intelligence (BI) software. Senior leaders from various SaaS companies were interviewed to understand the organizational structure required to implement a successful change to subscription licensing. Finally, this study provides some actionable insights for organizations that are planning to switch to a subscription based pricing strategy.
Description
Thesis: S.M. in Engineering and Management, Massachusetts Institute of Technology, System Design and Management Program, 2018.
Cataloged from PDF version of thesis.
Includes bibliographical references (page 51).
Subjects
Engineering and Management Program.
Integrated Design and Management Program.
MIT Department
Massachusetts Institute of Technology. Engineering and Management Program
Massachusetts Institute of Technology. Integrated Design and Management Program.
Terms of Use
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