SMBs no longer have to worry about the costs and investment associated with building and maintaining an infrastructure to support modern business applications as the SaaS subscription and delivery model now makes these applications affordable to businesses of all sizes.
Even though the royalty rates are set to rise each year, Sirius XM will continue to grow its cash flow on the back of its robust subscription based businessmodel.
The legacy LACE businessmodel was and remains a subscription service providing Financial Strength ratings for primarily American financial institutions.
Perhaps the real prize Summit Energy offered Schneider was a subscription-based businessmodel that pays on a monthly basis, which is very attractive from a margin and visibility standpoint.
Additionally, a subscription-based businessmodel that relies on stable recurring revenues will decrease the downside risk in a weak spending environment like the one the networking industry finds itself currently in.
Asked about the potential for Apple to get deeper into the video distribution business, Dunn says he thinks it is not likely that they will offer a subscriptionmodel.
Such a system might operate on a similar revenue model on the back end, too, by tying fees to utilization, subscription growth, or other business drivers.