I bet that made your ears perk up a bit, didn’t it?
Your CFO probably has the same type of reaction when the topic of revenue recognition rears its head. After all, it is one of the most critical elements in your business’ machinery.
Customers frequently ask me about the impact license enforcement and license key delivery can have on a company’s ability to recognize revenue. This indeed can be a touchy subject, so I should start by making a few foundational statements.
I will not suggest how your company should manage revenue recognition nor do I intend claim the revenue recognition practices are acceptable or VSOE compliant. Your company’s finance team should be the ultimate authority as to what is acceptable for your business. I encourage any business considering license enforcement to ensure your CFO is will deeply engaged in your license delivery processes.
I will, however, discuss a number of revenue recognition techniques and best practices that I have seen used by multiple successful companies with revenues over a half billion per year.