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Seriously...
Brian, you're the best when it comes to nailing this kind of thing. Bravo. But let me add a couple of (serious) points.

First of all, it is basically almost impossible under current accounting rules to assess the sales growth of established SaaS companies. You can't do it by looking at bookings; you can't do it by looking at revenues. The accounting rules that govern SaaS companies are different from those that govern perpetual license companies, and those accounting rules encourage obfuscation.

Second of all, the accounting rules are CHANGING. If EITF 08-01 and 08-09 take effect later this year, as I expect they will, the SaaS companies will be able to change what counts as revenue and when that happens, the obfuscation that Brian is talking about will diminish in importance. They won't need to obfuscate. They'll just change the goalposts.

David Dobrin (@toppundit)
The Applicator
Posted by: toppundit   Posted on: 08/18/09 You are currently: a Guest | Members login | Terms of Use

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Seriously...  toppundit | 08/18/09

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