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That doesn't explain why the old model became or didn't become unprofitable...


The parent comment was a loaded question that there was some sudden change. If the old model did good / better, they wouldn't have switched to a more profitable model. I believe it's well established in our industry that SaaS models are more profitable than one-time software sales. The analogy is equivalent to why Adobe switched Photoshop to a SaaS model and why Microsoft did the same for Office. Recurring revenue is king in the long run.




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