A door-access security technology company had developed an AI-enabled, video-based facial recognition solution in a market where competitors traditionally sold security hardware as a one-time purchase. Its cloud-connected, continuously-improving platform created an opportunity for a differentiated, subscription-based pricing strategy, but the company needed a commercially sound offer structure, a clear accounting position, and a sales organization ready to sell recurring value instead of a one-time box.
- Designed multi-year, tiered Hardware-as-a-Service subscription offers priced per secured device, with a backpocket perpetual-license option for buyers not ready to subscribe
- Developed an optional privacy-consent-management software add-on to expand the recurring revenue opportunity
- Built a GAAP-based revenue recognition memo to guide discussions with auditors on subscription versus hardware revenue treatment
- Modeled the financial business case, including revenue recognition timing and cash flow impact of the shift to recurring billing
- Created and delivered training materials to prepare the sales team and channel partners, who had previously only sold one-time hardware, to sell recurring subscriptions
The company launched its new subscription pricing model with confidence in both the commercial structure and the accounting treatment behind it. The new HaaS offer positioned the business for continued sales growth and supported its next round of funding.