Posted on 10/12/2005 10:22:09 AM PDT by Halfmanhalfamazing
Both Gartner and IDC, in recent reports, have said that a majority of software vendors will shift from upfront license revenue to long-term subscription revenue models by 2008. Currently, subscription revenue is estimated to account for less than 10 percent of the industry's revenues. Microsoft, the world's largest product company, has, however, refused to play ball.
(Excerpt) Read more at linuxinsider.com ...
It has nothing to do with Microsoft and everything to do with American tax law.
Microsoft software is subscribed to in Canada and other parts of the world because it is a tax friendly strategy. The US tax law encourages companies to purchase licenses.
In fact, the subscription model is much easier to earn a profit from. So if and when US tax law changes, Microsoft will easily adapt.
Hmmm, didn't know that.
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