{"id":6587,"date":"2015-10-24T11:57:43","date_gmt":"2015-10-24T11:57:43","guid":{"rendered":"http:\/\/www.esds.co.in\/blog\/?p=6587"},"modified":"2018-05-19T08:04:30","modified_gmt":"2018-05-19T08:04:30","slug":"revenue-generating-cloud-options-to-improve-your-business","status":"publish","type":"post","link":"https:\/\/www.esds.co.in\/blog\/revenue-generating-cloud-options-to-improve-your-business\/","title":{"rendered":"Revenue Generating Cloud Options to Improve your Business"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6588\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2015\/10\/Revenue-Generating-Cloud-Options.png\" alt=\"Revenue Generating Cloud Options\" width=\"674\" height=\"345\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2015\/10\/Revenue-Generating-Cloud-Options.png 674w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2015\/10\/Revenue-Generating-Cloud-Options-300x154.png 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2015\/10\/Revenue-Generating-Cloud-Options-660x338.png 660w\" sizes=\"auto, (max-width: 674px) 100vw, 674px\" \/><\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.esds.co.in\/blog\/revenue-generating-cloud-options-to-improve-your-business\/#Revenue_Generating_Cloud_Options\" >Revenue Generating Cloud Options<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.esds.co.in\/blog\/revenue-generating-cloud-options-to-improve-your-business\/#The_Criteria_for_Revenue_Recognition\" >The Criteria for Revenue Recognition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.esds.co.in\/blog\/revenue-generating-cloud-options-to-improve-your-business\/#Determine_a_Single_Arrangement_in_Contracts\" >Determine a Single Arrangement in Contracts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.esds.co.in\/blog\/revenue-generating-cloud-options-to-improve-your-business\/#Identify_All_Elements_in_the_Arrangement\" >Identify All Elements in the Arrangement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.esds.co.in\/blog\/revenue-generating-cloud-options-to-improve-your-business\/#Determine_Elements_That_Are_Separate\" >Determine Elements That Are Separate<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Revenue_Generating_Cloud_Options\"><\/span><strong>Revenue Generating Cloud Options<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Cloud computing is one of the fastest growing businesses in the IT world. This doesn\u2019t mean businesses in cloud computing don\u2019t face challenges. One of the most prevalent has to do with revenue recognition. Apart from recording revenue from customer contracts that are delivered over time, most businesses don\u2019t know how to surmount this challenge.<\/p>\n<p style=\"text-align: justify;\">The <strong>Businesses getting into cloud computing need to understand the aspect of revenue recognition from the beginning<\/strong>. Failure to grasp this concept could result in the businesses having to restate their financial statements in the future.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_Criteria_for_Revenue_Recognition\"><\/span>The Criteria for Revenue Recognition<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">The criteria a cloud computing company would use to recognize its revenue options are similar to that any other company would use. They <span id=\"95f0563f-ee6f-4a1b-a00a-39302e700f2e\" class=\"GINGER_SOFTWARE_mark\">include but<\/span> are not limited <span id=\"204dabab-bc0d-4f38-9d85-9fb88a6d5bb2\" class=\"GINGER_SOFTWARE_mark\">to the<\/span> following;<\/p>\n<ul>\n<li>There needs to be evidence that an arrangement exists between the company and its clients<\/li>\n<li>There also needs to be evidence that services have been rendered<\/li>\n<li>There needs to be evidence that the seller\u2019s price is fixed or to be determined<\/li>\n<li><span id=\"d98465f5-7f52-497f-9c21-e8092b787128\" class=\"GINGER_SOFTWARE_mark\">Collectability<\/span> of the amount agreed upon should be reasonably assured.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Provided that the above criteria are met, you shouldn\u2019t have problems with revenue generation. It is however not uncommon to find cloud computing contract issues. <strong>Most of <span id=\"6fe30e7b-891f-4b12-a686-04a6b46f5ad6\" class=\"GINGER_SOFTWARE_mark\">the time, cloud<\/span> computing revenue is derived from contractual agreements.<\/strong> The following are some of the options you can implement to ensure your contracts generate revenue.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Determine_a_Single_Arrangement_in_Contracts\"><\/span>Determine a Single Arrangement in Contracts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">The major problem faced by many cloud computing businesses is determining exactly what constitutes a single arrangement in their contracts. Being able to do this correctly will enable you to determine the cost of the single arrangement. In this way the revenue you earn could be determined by the cost of all the arrangements you have with clients.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Identify_All_Elements_in_the_Arrangement\"><\/span>Identify All Elements in the Arrangement<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">One contract can contain several deliverables. In cloud computing these can include technical support, training and subscription. <strong>You need to determine the cost of each of these elements so as to assign a price to each<\/strong>. There are some that could be discounted and <span id=\"d757fe13-2332-40bf-92a8-430fc3ebbb23\" class=\"GINGER_SOFTWARE_mark\">others even<\/span> offered free, but you need to be clear on the price for each.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Determine_Elements_That_Are_Separate\"><\/span>Determine Elements That Are Separate<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">You also need to determine the various elements of your contract that can be stand-alone products. These can be certain aspects such as training that are one-time offers. They can also be ongoing services such as hosting. These services are another revenue stream for your business and you need to determine the precise price of these income streams.<\/p>\n<p style=\"text-align: justify;\">These options enable you to establish the exact revenue your business can get. Since a cloud computing business is often run with contracts, the contracts need to be clearly defined. Clearly defining what is paid for and what is free is the key to revenue recognition in your business.<\/p>\n<p>How effective is the revenue structure you use and what measures did you take to create the structure? Share your thoughts with us in the comments section below. We value your input.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are the revenue options for a cloud computing business? Find out how to ensure a revenue flow in your business. <\/p>\n","protected":false},"author":81,"featured_media":6588,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[15],"tags":[1390,1391],"class_list":["post-6587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cloud-computing","tag-cloud-computing-revenue","tag-cloud-computing-revenue-options"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/6587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/users\/81"}],"replies":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/comments?post=6587"}],"version-history":[{"count":3,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/6587\/revisions"}],"predecessor-version":[{"id":8980,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/6587\/revisions\/8980"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/media\/6588"}],"wp:attachment":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/media?parent=6587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/categories?post=6587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/tags?post=6587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}