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Im curious how companies make the allocation decisions if a software offers subscription.

If it's a new application, this would be more difficult than adding services to an existing vendor where benefits have been proven. Probably why land and expand is a successful strategy.

What calculation is the customer making with subscription costs? NPV with forever payments? Or, contract length of just a year or two?

Subscription is expense as well as all the installation and misc ramp up and now more and more there will be some rented cloud space to go with the software, so does that exclude common capital hurdles like ROIC and EVA?
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