Transition of Solution Services to a Subscription-Based Revenue Model
First written in FY2020. 9 of 12 entries say "Advanced", first in FY2023. Latest entry: 2026-10-28.
5 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Stock services, including usage-fee-based services, for the core ZeeM series and other products remained solid, providing a stable expansion of the earnings base. As a result, revenue was ¥5,342 million, up 5.6% year on year, and operating profit was ¥1,019 million, up 12.8%.」
The transition to subscription- and usage-fee-based models took concrete shape over the full fiscal year through solid performance in recurring services and higher revenue and profit in the solution services business. - FY2026-H1AdvancedAnnual report
「Revenue increased by ¥177 million year on year and operating profit increased by ¥90 million, mainly due to continued growth in cloud-based usage fees.」
Regarding the transition to subscription-based and usage-fee models, continued growth in cloud-based usage fees contributed to higher revenue and profit in the first half. - FY2025-H1AdvancedAnnual report
「Revenue increased by ¥123 million year on year and operating profit increased by ¥64 million, mainly due to growth in cloud-based usage fees.」
The company explained that growth in cloud-based usage fees contributed to higher revenue and profit in the first half in connection with the transition to subscription-based and usage-fee models. - FY2023AdvancedAnnual report
「Revenue decreased by ¥800 million year on year and operating profit decreased by ¥270 million, mainly because the shift to cloud-based usage fees from license-based products and services accelerated.」
The transition to subscription-based and usage-fee models progressed as an acceleration of the shift to the cloud, while revenue and profit declined during the period due in part to lower license revenue. - FY2023-Q1Model changes driven by stronger-than-expected cloud demand and lower profitAnnual report
「Although orders remained solid, revenue declined by ¥46 million year on year and operating profit declined by ¥107 million, due to changes in the business model driven by cloud demand exceeding expectations, as well as projects undertaken as strategic orders falling substantially short of plan.」
Regarding the conversion to cloud services and the transition to a subscription-based revenue model, the business model changed in response to cloud demand exceeding expectations, while the solution services business reported lower revenue and profit. - FY2022-Q2RestatedAnnual report
「Operating profit decreased by ¥10 million year on year due to product development and PR investment aimed at converting products into cloud services, as well as certain unprofitable projects.」
The company continues to invest in product development and public relations to convert its solution services to cloud services. No new completion milestone has been indicated. - FY2020First statedAnnual report
「To address this risk, the business is taking measures including transitioning the solution services revenue model to a subscription-based model, with the aim of generating stable and level revenue and profit by increasing the proportion of so-called “recurring revenue.”」
To address the risk of prolonged sales negotiations and implementation for ZeeM and other products, the company began measures to increase the proportion of recurring revenue and transition its revenue model to a subscription-based model.