SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Siebel Systems (SEBL) - strong buy?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: SWF-Steve who wrote (1986)7/25/1998 11:30:00 AM
From: APPTRADER  Read Replies (2) of 6974
 
I suspect that much of the DSO increase comes from sales where the contract is rather large and the customer doesn't want to pay for all of it up front. When a customer implements something life SFA they roll out the software seats in phases. They often feel that they shouldn't have to start paying for the seats until they are deployed.

If they are going to deploy 500 seats per quarter they may want to pay for them at that rate. In order to negotiate the best price however, they agree to a sales contract committing them to their entire roll out plan, typically at least 1 year's worth of seats.

Also, customers often don't want to start paying the 15% annual maintenance fee on the software seats until they are put in use, so they negotiate for deferred payment schedules. All these deferred payments contribute to DSO.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News