Software suppliers still selling software as a perpetual license should strongly consider moving to a subscription business model. It creates an ongoing relationship between vendor and customer and provides vendors with predictable revenue and customers with predictable spend.

"The trend to the subscription business model continues to grow quickly at a CAGR of 17.9% for 2020–2025 and is forecast to represent 83% of total software revenue by 2025," said Mark Thomason, research director for Digital Business Models and Monetization with IDC.

This IDC study provides the worldwide software business model (subscription and license) forecast through 2025 and offers advice and best practices on:

  • Moving to a subscription model
  • Creating an agile business platform, and
  • Taking a data-driven approach to the consumption pricing model

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