More than 90% of software and services vendors are selling their products on subscription plans, generating annual recurring revenue (ARR). The model is more advantageous than traditional sales through transactional perpetual licensing, as it provides predictable revenue that leads to higher market valuations. While software and services sold on long-term recurring contracts have many operational and economic advantages, generating sales through partners isn’t always easy. Many vendors are challenged in getting partners to accept and act on the model. A company finding success in the subscription model is Cato Networks, which recently announced it surpassed $200 million in ARR, doubling the volume in less than two years. Cato’s global channel chief, Frank Rauch – a veteran of legacy and emerging channel models – joins Changing Channels to discuss the lessons learned in developing ARR through partners.

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About Frank Rauch

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