rpetual license to their water utility customers who would then install the software on a local computer or server.
Customers would have the option of purchasing annual maintenance and support packages and could upgrade the installed software every few years as new versions with additional functionality became available. This business model allowed customers to 'own' the software which also meant they could budget for the technology expense in a single fiscal period and then decide whether or not to update to a newer version in the future.
Topics: capitalizing software
Accounting for Utility Software Services
July 17, 2018
| By Jeff Lipton