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As a SaaS vendor I agree with the revenue recognition over the life of the "subscription" contract. But if the "Professional" services are a separate line item and cover services such as business process analysis, modeling, re-engineering etc., with defined deliverables I do not agree. These are costs that typically occur during pre-sale, at project initiation and during implementation before the switch is even thrown to turn the service on. They also can be done separate from the subscription service. If these accounting methods were changed to cover professional services in this way not only would SaaS providers have to adjust their books but so would on premise software providers. What a mess.
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