Converting legacy software to SaaS requires enormous balance sheet cash
John Oechsle · 1129 He Bought $70m Of ARR w/ Other Peoples Money, Kept 60%+ Equity for Common · Aug 27, 2018 · at 13:37
John Oechsle, CEO of Swiftpage, explains the cash flow dynamics and revenue recognition lag when transitioning software models.
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“So one of the things you need to realize everybody does is as they, as you go through a license and maintenance company and you convert it over to you know, SAS and subscription. You need an enormous amount of cash on your balance sheet. And your revenue looks like it's going down.”
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