The fish is what happens when a traditional company starts to shift its revenue mix from an asset purchase model to a subscription model. In this scenario, the company experiences a string of quarters where top-line revenues shrink as revenues from large, pay-up-front deals are replaced by recurring subscriptions without the big up-front payment. At the same time as revenues dip, the company must make investments in many of the new capabilities and structures that are required for profitable XaaS. The traditionally profitable and stable mix of more revenue than costs on the left side of the
...more
