Introduction of a subscription model for on-premises products

「In anticipation of the phased end of support for packaged products from 2028 onward, the company plans to use the shared ID platform PCA ID and develop its pricing structure so that existing maintenance customers for on-premises products can smoothly migrate to the latest services.」

「The recurring-revenue model is a revenue model that excludes maintenance revenue from on-premises products from the stock revenue traditionally viewed as stable income, and pursues recurring profitability and sustainable growth through core cloud services, such as PCA Cloud, peripheral cloud services, such as PCA Hub, and on-premises services for continued use, such as PCA Subscription, all of which are expected to generate recurring billing revenue.」

「In March 2024, together with the decision to end outright sales of on-premises products, or the packaged model, the company substantially revised the price of PCA Subscription to bring it down to approximately the same level as the annual maintenance fee for on-premises products. This is intended to further accelerate the shift to a stock-based business model by establishing a smooth path for maintenance customers of on-premises products to migrate to PCA Subscription.」

「Against this backdrop, as a vendor of subscription-based core business systems, we decided to end sales of the packaged version of PCA Software that we provide at the end of March 2024, and to end support in March 2029, in order to focus our development and support resources on subscription services.」

「The company's core-business subscription services offer a hybrid model that allows customers to select the implementation method suited to their operating environment, whether cloud-based or on-premises. The application functions of PCA Cloud and PCA Subscription are shared, and their data are interoperable, enabling flexible support for users' operating environments.」

「The company's core-business subscription services offer a hybrid model that allows customers to select the implementation method suited to their operating environment, whether cloud-based or on-premises. The application functions of PCA Cloud and PCA Subscription are shared, and their data are interoperable, enabling flexible support for users' operating environments.」

「With PCA Subscription at the center, the company is promoting the shift from outright sales of on-premises products, or the packaged model, to services for continued use. As with the implementation of the invoice system under “1. Further expansion of the cloud business,” it will actively propose PCA Subscription and provide on-premises users with an easy and convenient environment for continued use of the latest products, functions and services.」

「The company's core-business subscription services offer a hybrid model that allows customers to select the implementation method suited to their operating environment, whether cloud-based or on-premises. The application functions of PCA Cloud and PCA Subscription are shared, and their data are interoperable, enabling flexible support for users' operating environments. PCA Subscription is a service that allows users to install PCA software in an on-premises or IaaS environment and use it for a monthly or annual fee. The company also offers PCA Subscription Complete, an unlimited-use plan that allows multiple PCA software products to be used together.」

「For its on-premises business, consisting of sales and maintenance of conventional packaged software, the company reviewed its product offerings and service structure. As part of its business-strengthening initiatives, it launched from the fiscal year ending March 2021 a subscription model under which the latest version is always available through recurring payments for software use.」

「During the six-month consolidated cumulative period under review, the company launched subscription services for packaged products in July 2020 and released the PCA Accounting Hyper receivables management and payables management options in the same month, thereby expanding its service lineup.」

「As a specific initiative, from the fiscal year ending March 2021 the company launched a subscription model under which the latest version is always available through recurring payments for software use. It aims to increase customer lifetime value by extending the model to existing on-premises customers while acquiring new customers seeking on-premises solutions.」

「From October 2019, our Group held PCA Strategy Forum 2020 in major cities across Japan under the theme "Co-creating the Subscription Business: New Partnerships Leading to Customer Success," while promoting digital-first products using the cloud and RPA.」

「The company will newly offer a service that integrates version upgrades, meaning paid replacement with successor products, into this maintenance service, enabling users to access applications through a subscription model with monthly payments. Because no product licence fee is required at implementation, users can access the latest applications at a low cost through fixed monthly payments.」