New Business Models · SaaS / Software

Perpetual Licence to Subscription for a B2B Software Company

Client
B2B HR software company (₹18.4 Cr perpetual licence revenue)
Engagement
New Business Models consulting engagement
Location
Hyderabad
Shortlist timeline
≤24 hrs to shortlist
Engagement case file

Details anonymised at client request.

01 · Context

Business Situation

The company generated most of its revenue through perpetual software licences and annual maintenance contracts. While the model had supported growth for years, revenue remained unpredictable, maintenance renewals lacked structure, and customer retention visibility was limited. Leadership believed a subscription model would create a stronger long-term business, but the board remained concerned about the temporary revenue decline that often accompanies subscription transitions.

02 · The work

What the Consultant Did

An independent business-model consultant evaluated customer economics, renewal behaviour, cash-flow implications, and transition scenarios for the subscription model. The engagement included financial modelling, migration strategy design, customer-conversion planning, pricing evaluation, and board-level decision support. Particular focus was placed on managing short-term revenue risk while creating a sustainable recurring-revenue structure.

03 · The shift

What Changed

The company launched a phased migration strategy, moving all new customers onto subscription plans while offering structured conversion paths for existing customers. The transition improved revenue visibility, increased recurring revenue adoption, and reduced uncertainty around long-term customer retention.

04 · Outcomes

Evidence, not adjectives.

The measurable changes recorded during or following the engagement.

63% of existing customers converted to subscription plans within 14 months

ARR reached ₹9.4 Cr against a planned ₹8.7 Cr

Revenue transition impact remained below forecasted levels

Subscription-based commercial model established across new customer acquisition

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