Financial results calls can be tearfully boring. Even here at IFS, which has a more relaxed culture, executives are heavily scripted to avoid running afoul of securities regulations. So when I listen to the financial results calls for IFS AB, I really look forward to the question and answer portion. Journalists and financial analysts press CEO Alastair Sorbie and CFO Paul Smith on specific elements of the financial report and the future direction of the company. That is when the real nuggets of wisdom often come out.
And that was the case on the recent IFS financial results call, highlighted in this IFS Radio Network podcast. Sorbie was asked about subscription pricing, or software-as-a-service (SaaS) for cloud ERP. IFS competitors are moving more towards SaaS in part because it leads to more revenue than selling a perpetual license. For an idea of why SaaS is becoming more popular among software vendors, check out Dave Kellogg’s blog post on what he refers to as the “perpetual money model.”
Obviously, a subscription pricing model could affect revenue. What did Alastair say?
Get a sense of where IFS is going with cloud, along with an overview of our Q1 results. Just slap on those earbuds and hit play!