Re:Microsoft, currently the most valuable company, is having...
by jacques_chester on Thursday May 02, 2019 @09:47PM
(#19814787)
You can make the same argument for the old CDs-in-boxes model too. "If there's a recession, sales will go down".
The difference is that recurring payments vastly improve your cashflow situation. Instead of giant pulses every 3 years you have a smoother pipeline of cash coming in all the time. Even if that pipeline shrinks, it still flows.
It's far easier to plan for a 10% reduction that happens continuously than a 3 year plan with lots of "??$??" sprinkled throughout it. And far easier to recover from mistakes.
The difference is that recurring payments vastly improve your cashflow situation. Instead of giant pulses every 3 years you have a smoother pipeline of cash coming in all the time. Even if that pipeline shrinks, it still flows.
It's far easier to plan for a 10% reduction that happens continuously than a 3 year plan with lots of "??$??" sprinkled throughout it. And far easier to recover from mistakes.