Who said moving to a subscription revenue model is easy?

While it may not be easy to transition from a license-based model to a recurring revenue model, the benefits are clear. And, more importantly, it isn't really an option for most software developers and resellers. If you own or manage a software company and want to remain competitive in a subscription economy, this change is imperative. For those of us in the Dynamics channel, we're past wondering when and if. Maintenance revenue and large license sales are already taking a back seat to subscriptions and services.

It isn't just software companies that are facing a fundamental change to the way revenue is captured and recognized. From software and computing power to healthcare, specialty manufacturing and even retail products like razors, we're seeing a constant stream of new subscription-based offerings. We've all watched as the music industry has been entirely reinvented in the wake of paid subscriptions and streaming music. Revenue for companies like Apple Music, TIDAL and Spotify Premium are quickly catching up to revenue from physical sales and permanent download. A report published by the Recording Industry Association of America (RIAA) said music streaming revenues for the first half of 2016 reached $1.6 billion, up 57% year-over-year. Most B2B professional services companies have added subscription options to the list and many have moved to it entirely.

As a Microsoft Master VAR, our company has worked on building a successful subscription model for both software resellers and Dynamics customers across a range of industries like online survey companies and industrial equipment service providers.

Digital experiences are what the fans want

In our case, the "fans" may be consumers or businesses looking to acquire access to software in a way that they're most comfortable with. Millennials have grown up subscribing, not buying. And if ...