Impact of changing pricing strategy from perpetual to subscription licensing on an organization

Thesis: S.M. in Engineering and Management, Massachusetts Institute of Technology, System Design and Management Program, 2018.

Bibliographic Details
Main Author: Jindal, Shweta
Other Authors: Catherine Elizabeth Tucker.
Format: Thesis
Language:eng
Published: Massachusetts Institute of Technology 2018
Subjects:
Online Access:http://hdl.handle.net/1721.1/118546
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author Jindal, Shweta
author2 Catherine Elizabeth Tucker.
author_facet Catherine Elizabeth Tucker.
Jindal, Shweta
author_sort Jindal, Shweta
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description Thesis: S.M. in Engineering and Management, Massachusetts Institute of Technology, System Design and Management Program, 2018.
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spelling mit-1721.1/1185462022-01-12T20:28:16Z Impact of changing pricing strategy from perpetual to subscription licensing on an organization Jindal, Shweta Catherine Elizabeth Tucker. Massachusetts Institute of Technology. Integrated Design and Management Program. Massachusetts Institute of Technology. Engineering and Management Program Massachusetts Institute of Technology. Integrated Design and Management Program. System Design and Management Program Engineering and Management Program. Integrated Design and Management Program. Thesis: S.M. in Engineering and Management, Massachusetts Institute of Technology, System Design and Management Program, 2018. Cataloged from PDF version of thesis. Includes bibliographical references (page 51). There is an increasing trend in SaaS businesses to offer products and services via subscription licensing. According to a Gartner Study', 80 percent of software vendors will change their business model from perpetual licensing to subscription pricing by 2020. This implies that existing software companies will need to transition to subscription licensing to continue to stay relevant in the market. Strategy change of this nature is not straightforward, and requires a lot of key departments to come together to execute it well. This thesis focuses on understanding the impact of the shift to subscription licensing on external customers and internal departments (sales, marketing, product management & finance) of organizations that make such a change. Reactions of external customers are analyzed via a case study on Tableau, which recently moved to a subscription based model for its Business Intelligence (BI) software. Senior leaders from various SaaS companies were interviewed to understand the organizational structure required to implement a successful change to subscription licensing. Finally, this study provides some actionable insights for organizations that are planning to switch to a subscription based pricing strategy. by Shweta Jindal. S.M. in Engineering and Management 2018-10-15T20:24:40Z 2018-10-15T20:24:40Z 2018 2018 Thesis http://hdl.handle.net/1721.1/118546 1055162181 eng MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission. http://dspace.mit.edu/handle/1721.1/7582 52 pages application/pdf Massachusetts Institute of Technology
spellingShingle Engineering and Management Program.
Integrated Design and Management Program.
Jindal, Shweta
Impact of changing pricing strategy from perpetual to subscription licensing on an organization
title Impact of changing pricing strategy from perpetual to subscription licensing on an organization
title_full Impact of changing pricing strategy from perpetual to subscription licensing on an organization
title_fullStr Impact of changing pricing strategy from perpetual to subscription licensing on an organization
title_full_unstemmed Impact of changing pricing strategy from perpetual to subscription licensing on an organization
title_short Impact of changing pricing strategy from perpetual to subscription licensing on an organization
title_sort impact of changing pricing strategy from perpetual to subscription licensing on an organization
topic Engineering and Management Program.
Integrated Design and Management Program.
url http://hdl.handle.net/1721.1/118546
work_keys_str_mv AT jindalshweta impactofchangingpricingstrategyfromperpetualtosubscriptionlicensingonanorganization