SAP’s Bob Stutz rips off the enterprise software pricing Band-Aid as DSAG reports significant redlines in member revenue
Last Friday, Paul Greenberg and Brent Leary, two of the best-known analysts in the CRM space hosted a public LinkedIn video discussion with senior executives from SAP, Oracle, Adobe, Microsoft, and Salesforce. Events of this kind are rare and there are plenty of learnings to be had from that session.
Towards the end of the 90 plus minute discussion, Bob Stutz, President of Engineering and Operations for SAP Customer Experience threw a curveball that has long been missing from discussions around responses to the COVID-19 pandemic:
I think the biggest question that I constantly get, and it’s not directed towards the current company I work for, but more around the industry is when is the software industry going to change its pricing model?…I mean, subscription models are hard. And, constantly I get asked the question, when will this industry move to a pay as you consume model? And it’s a valid question at the end of the day. Why should in this day and age, when you look at how things are built, if I use the hyperscaler, I get billed for what I consume, and it’s pretty darn accurate down to the second, usually? But if I use an SFA app, I’m getting charged a subscription. And depending on which company it is, it could be anywhere from $150 to $800 a month. And the question really is a valid one. When will the industry change?
Why can’t I just pay for what I use at the end of the day? I think in the pandemic, this is even more critical because companies do struggle. Subscriptions are killing because customers can’t afford to keep paying the subscriptions, especially when their business is faltering. Why does the industry make me pay from the time I
Lithia Motors, Inc. (NYSE: LAD) today announced the pricing of its public offering (the “Offering”) of 3,181,819 shares of its Class A common stock (the “common stock”) at a price to the public of $220.00 per share. In addition, the underwriters have been granted a 30-day option to purchase up to an additional 477,272 shares of common stock at the same public offering price, less underwriting discounts and commissions. The offering is expected to close on October 5, 2020, subject to the satisfaction of customary closing conditions.
In addition, today Lithia concurrently announced the pricing of its private offering of $550 million aggregate principal amount of its 4.375% senior notes due 2031 (the “Notes”), which represents an increase of $50 million from the offering size previously announced. This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes.
Goldman Sachs & Co. LLC and J.P. Morgan are acting as joint lead book-running managers for the Offering. BofA Securities, Citigroup and Morgan Stanley are acting as joint book-running managers, and BTIG, Wells Fargo Securities, TD Securities, Truist Securities and Capital One Securities are acting as co-managers in the Offering.
A shelf registration statement relating to our common stock has been filed with the Securities and Exchange Commission (the “SEC”) and became automatically effective upon filing. The Offering is being made only by means of a prospectus supplement and an accompanying prospectus. A preliminary prospectus supplement relating to and describing the terms of the Offering was filed with the SEC on September 29, 2020 and is available on the SEC’s website at www.sec.gov. Copies of these documents and the final prospectus supplement, when available, may be obtained from: Goldman Sachs & Co. LLC, 200 West Street, New York, New York 10282, Attention: Prospectus Department,