Amidst the software industrys crazy unicorn valuations and hot buzzword-compliant startups, one software business model remains tried and true: buy the rights to a mature enterprise software product (or the whole company) and then milk its customers for ever-dwindling maintenance dollars.
To keep the company going, continue to buy more such products and companies, thus maintaining a growth trajectory in spite of the downward trend each product takes individually.
The result can provide a lucrative revenue stream, in spite of the fact that customers will inevitably get fed up with products that arent keeping up with the times.
Sometimes, however, the risks inherent in such a model overwhelm the advantages, and the company goes down the…
Read the full article at: https://www.forbes.com/sites/jasonbloomberg/2018/10/05/asg-technologies-enterprise-software-phoenix/