NETSOL Technologies Introduces Subscription Pricing Option for Global Markets
CALABASAS, Calif., Oct. 30, 2019 (GLOBE NEWSWIRE) -- NETSOL Technologies, Inc. (NASDAQ: NTWK), a global business services and enterprise application solutions provider, announced an update to its existing pricing model, effective immediately. On a go-forward basis, all global contracts will now provide NETSOL customers with the option for subscription-based pricing as an alternative to the traditional license model. This Software-as-a-Service (SaaS) pricing option is available for all cloud-based NETSOL products and services, including NETSOL’s flagship offering NFS Ascent.
Subscription-based pricing is being offered on a monthly, quarterly or annual basis. Along with other value-based factors built into the model, the new pricing plan is intended to decrease initial buy-in cost for new customers and provide an alternative to current customers seeking lower software usage and maintenance costs.
By removing upfront license fees, NETSOL is enabling organizations to more effectively spread software usage and maintenance expenses over time rather than through legacy processes, which require complex and lengthy procurement cycles and result in heavy spending at the outset of an agreement before services are performed. Prospective and current customers now also have added flexibility in payment with the ability to scale operations seamlessly if needed. For NETSOL, transitioning to a subscription billing model, over time, would provide substantially improved recurring revenue opportunities, leading to greater customer lifetime value (LTV) as well as long-term financial visibility.
“With this new pricing option, we’ve now effectively removed what was previously a barrier for certain potential customers due to the significant upfront costs associated with traditional license agreements,” said Najeeb Ghauri, Co-Founder, Chairman and Chief Executive Officer of NETSOL Technologies. “We believe our customers will materially benefit from a more flexible structure that allows them to optimize spend more dynamically, which should also enable better oversight in their anticipated expenses. While we believe this new pricing strategy to be customer friendly, we also expect NETSOL will be positively impacted in a number of ways, namely through improved recurring revenues, customer retention, and, ultimately, lifetime values. While this global program is still in its early days, we are looking forward to the potentially transformative effect our new go-to-market can have over the long-term.”
Head of Global Sales Asad Ghauri added: “We are witnessing increasing demand from our existing clients and new prospects alike to offer additional SaaS and cloud-based deployment options. In response to this growing demand, we built a comprehensive pricing model from the ground up. Our new SaaS offering provides for faster decision making thanks to a lower pricing barrier to entry. While we expect the new SaaS pricing will be a significant boost to our business into the future, we do anticipate early impact in licensing revenue. However, with a more sustainable and predictable revenue model going forward, we’ll soon be able to forecast more accurately with increased transparency in our financial reporting as well. We already have a healthy pipeline of prospects who are interested in this new pricing option, and we look forward to announcing new deals in the coming weeks and months.”
About NETSOL Technologies
NETSOL Technologies, Inc. (NASDAQ: NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global Leasing and Finance industry. The Company’s suite of applications is backed by 40 years of domain expertise and supported by a committed team of more than 1,300 professionals placed in eight strategically located support and delivery centers throughout the world. NFS, LeasePak, LeaseSoft or NFS Ascent – help companies transform their Finance and Leasing operations, providing a fully automated asset-based finance solution covering the complete leasing and finance lifecycle.
Certain statements in this press release are forward-looking in nature, including, but not limited to, expected net revenue and the demand for and sales lifecycle of NFS Ascent, and accordingly, are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words “expects,” “anticipates,” variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.
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Released October 30, 2019