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Perpetual to subscription

Stop revenue leakage in the shift from perpetual to subscription

Legacy license contracts and new subscriptions run on different systems with different rules. xfactrs finds where what customers signed and what they're billed don't match, while you convert.

This is for you if

  • You still bill maintenance on perpetual licenses while selling subscriptions
  • You're running a conversion program with credits or trade-ins
  • Your ARR number now drives valuation, and it has to hold up
Talk to our teamTakes about a minute

See where your conversion is leaking

Tell us about your transition. We'll show you where contracts and billing don't match, with the dollar amount and root cause.

Billing systems in play

Where are you in the transition?

  • Read-only access
  • SOC 2 Type II
  • No system changes

We have your message.

Thanks for reaching out. Someone from our team will get back to you shortly.

The problem

Your contracts changed. Your billing rules didn't all change with them.

During the shift, one customer can hold a perpetual license, a maintenance contract, a conversion credit and a new subscription, often in two different systems.

Every conversion deal is custom. Credits that should end don't. Maintenance that should stop keeps going, or stops before the subscription starts. Nobody sees it until the ARR doesn't tie out.

Same customer. Mid-conversion.Illustrative
Legacy ERP
AccountHalden Group
LicensePerpetual, 500 seats
MaintenanceActive
RenewsJul 1
StatusNot converted
Subscription billing
AccountHalden Group
PlanCloud, 500 seats
Conversion credit30%
StartsJan 1
Credit endsNot set
Ray flagged 2 issues on one accountMaintenance and subscription on the same seats, and a credit with no end date.
1 to 5%of revenue leaks in a typical subscription business. Source: MGI Research
Conversion offersCredits and trade-ins priced deal by deal
Hybrid baseLicenses, maintenance and subscriptions side by side
Ratable revenueNew recognition schedules that must match billing

A business model change adds new handoffs on top of that baseline. The risk runs for as long as the hybrid base does.

Where it breaks

Six places revenue goes missing in the shift to subscription

None of these show up in a conversion dashboard. All of them show up in ARR, revenue or a customer dispute eventually.

01

Maintenance that never stopped

Converted customers still billed maintenance. Or maintenance ends before the subscription starts, leaving a gap.

02

Conversion credits gone wrong

Trade-in credits over-applied, stacked with other discounts, or running past their end date.

03

Legacy terms left behind

Price holds, CPI uplifts and enterprise agreement terms that never made it into the new plan.

04

Entitlements that doubled up

Customers keep the old license and get the new subscription features, but pay for only one.

05

Hybrid customers split across systems

Part perpetual, part subscription. Seats counted in one system and billed from the other.

06

Revenue schedules that don't match billing

Ratable schedules under ASC 606 built one way, invoices issued another. The gap lands at close.

How xfactrs works

Revenue checks across every stage of the transition

1

Before you convert

Map the installed base

We connect read-only to your legacy ERP and your subscription billing. Ray, our AI agent, lines up every license, maintenance contract and subscription by customer.

Read-onlyNo legacy data moved
2

While you convert

Check every conversion deal

500+ control points check credits, end dates, maintenance stops and entitlements. Every mismatch comes with a dollar value and a root cause.

Finding$41,500 / yr
Contract30% credit for 24 months
BillingCredit still applied in month 27
Root causeNo end date on the credit
3

Hybrid years

Keep the mixed base clean

The controls keep running as long as licenses and subscriptions live side by side. Gaps get caught in the billing cycle they happen in.

Every billing cycleEvidence trail

xfactrs sits on top of your billing, CRM and ERP. It doesn't replace them. Your transition plan stays as it is. We add the check that what each customer signed matches what they're billed.

ZuoraSalesforce BillingOracle BRMNetSuiteChargebee

Proof

$20.4M

in revenue protected every year

That is what one xfactrs client protects each year with continuous checks across quote-to-cash. The same controls run on your legacy and subscription systems during the shift.

See client stories
500+Control points across quote-to-cash
70%Faster reconciliation
14 to 3Days to close, for one client

What changes

What changes for your team

CFO

ARR you can defend

To the board and investors, while the revenue model is changing under you.

Controller and CAO

Revenue schedules that match billing

Fewer manual true-ups at close, and 70% faster reconciliation.

Internal Audit

Controls over every conversion deal

Custom credits and terms get checked, with an evidence trail behind every finding.

Billing and systems

One view across old and new

Legacy ERP and subscription billing checked against each other, by customer.

Questions

Before you start

Anything else? We're happy to walk through your transition plan.

Talk to the team
When should we start?

Before your conversion program launches, so every deal is checked from the first one. If you're already converting, start now. The hybrid base is where gaps build up.

Do we need to move legacy data first?

No. xfactrs connects read-only to your legacy ERP and your subscription billing as they are. Nothing changes in either system.

Does this replace our revenue recognition software?

No. Your rev rec system builds the schedules. xfactrs checks that contracts, billing and those schedules agree with each other.

Can it handle hybrid customers?

Yes. Ray checks licenses, maintenance and subscriptions for each customer together, even when they sit in different systems.

Start with one finding.

The 15-Day Challenge connects to your legacy and subscription billing, read-only, and brings back one confirmed leak with the dollar amount and root cause.