David Erbas-White wrote:
> Allen Bauer wrote: > > David Erbas-White wrote: > > > >> Allen Bauer wrote: > > > > >> Sorry, I have to call BS on this one... > > > > >> This 'problem' only existed for a year once the accounting method > >> changed. As a programmer, you should easily be able to figure out > >> the paradigm. > > > > If, and only if you can survive that year with markedly lower > > revenue. Also, it assumes that there are enough customers jump on > > that bandwagon. > > That year interval has long since come and gone. You folks are NOW > (and obviously for quite some time previously) living off of 1/12th > of new revenues, 1/12th of last month's revenue, etc., so you've > obviously successfully made that transition. There are no new > transition costs.
I'm not sure where you got this information but that is not true at all. We don't amortize license revenue. A license sale is booked at the time of delivery. Only the SA portion of a sale (if it is so included) is spread out over the next 12 months. I assure you that our SA to new license revenue ratio is nowhere near where it would need to be to transition to this new model.
-- Allen Bauer Embarcadero Chief Scientist http://blogs.embarcadero.com/abauer