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Subscriptions and Recurring Revenue are Transforming Fleet Management and Ride-Sharing Sectors

Mon, Feb 16, 2026 @ 07:00 AM / by David Fellers posted in CEO perspective, Recurring Revenue, fleet management

As we move into 2026, fleet management and ride‑sharing companies are pushing hard into Mobility‑as‑a‑Service (MaaS) offerings with hybrid, usage‑driven subscriptions, underpinned by sophisticated quote‑to‑cash, billing, and revenue recognition platforms, integrated within unified end-to-end environments, such as SAP Cloud ERP.

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The Energy and Renewables Sector is Using Innovative Recurring Revenue Models to Transform Business Operations

Tue, Feb 10, 2026 @ 04:54 AM / by David Fellers posted in CEO perspective, Thought Leadership, subscription model, Recurring Revenue

The energy and renewables industry is rapidly moving from “building and selling assets” to “delivering ongoing outcomes,” with recurring revenue and subscription models emerging as core ways to finance projects, de‑risk adoption, and deepen customer relationships. These models sit at the crossroads of bigger shifts, such as decarbonization, decentralization, digitalization, and electrification, so getting them right is now a strategic priority for utilities, developers, and technology providers alike.

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Transformational Changes in the Automotive Sector are Driving Recurring Revenue Models

Mon, Jan 26, 2026 @ 05:15 AM / by David Fellers posted in CEO perspective, Recurring Revenue, Automotive

Automakers are turning cars into connected, software‑defined platforms, using subscriptions and recurring services that help extend revenue opportunities far beyond the initial sale, while riding broader shifts toward electrification, autonomy, and mobility‑as‑a‑service. This creates huge upside but also exposes OEMs and fleet managers to new risks in pricing, customer trust, data, and finance operations that have to be managed as carefully as any powertrain or safety system.

Going from one‑time sales to Software‑defined Vehicles

The rise of software‑defined vehicles (SDVs) means a growing share of value is delivered as code that can be updated and monetized over the vehicle’s life, not just at the dealership. OEMs are building software operations that support over‑the‑air (OTA) updates, remote diagnostics, and continuous feature releases, which become the foundation for new recurring revenue streams.

Recurring revenue in automotive is emerging at several layers of the value stack.

  • In‑vehicle feature subscriptions: OEMs now charge recurring fees for advanced driver‑assist, premium infotainment, connectivity, performance modes, and other “features‑as‑a‑service,” with Tesla’s shift of Full Self‑Driving to subscription‑only a prominent example.
  • Connected services and data: Remote vehicle monitoring, predictive maintenance, navigation, and telematics are sold as ongoing services, with connected offerings becoming an increasingly important slice of automaker revenue.
  • Vehicle and mobility subscriptions: Car subscription programs bundle access to vehicles, maintenance, insurance, and sometimes EV charging into monthly packages, positioned between leasing and on‑demand mobility.

These models align with broader consumer trends toward flexibility and “access over ownership,” especially among younger drivers who prefer configurable, on‑demand mobility and always‑up‑to‑date digital experiences.

Strategic challenges behind the subscriptions

The commercial story is compelling, but the execution is non‑trivial.

  • Customer trust and value perception: Drivers can resent paying monthly for features they feel were already “in the car,” so OEMs must make the value of ongoing services (safety, convenience, performance, updates) obvious and transparent.
  • Pricing and packaging complexity: Hybrid models that mix base subscriptions with usage‑based or time‑limited upgrades require sophisticated catalog, discount, and lifecycle logic, far beyond traditional trim‑level pricing.
  • Regulatory, safety, and cybersecurity: Safety‑relevant features and OTA updates must meet regulatory expectations and robust security standards while also supporting granular entitlements and billing.
  • Financial and operational rigor: Finance teams must separate billed cash from recognized revenue under standards like ASC 606, to track performance obligations over time, and contract history when customers change plans mid‑term.

Recurring revenue models sit at the intersection of several long‑run automotive shifts.

  • Electrification: EVs reduce mechanical service revenue, so OEMs look to software, energy services, and connected offerings to maintain lifetime value.
  • Autonomy and ADAS: Advanced driver‑assist systems and autonomous features need constant software refinement; subscriptions give OEMs a way to fund ongoing development while delivering updates via OTA.
  • Mobility ecosystems: Vehicle and fleet subscriptions integrate with ride‑hailing, car‑sharing, and corporate mobility programs, turning OEMs into service providers rather than pure manufacturers.
  • Data monetization: Connected vehicles generate rich data that can support insurance, fleet optimization, mapping, and personalized offers, often bundled with or enabled by subscription services.

In this context, recurring revenue is not an isolated tactic; it is how OEMs monetize the software and connectivity required for EVs, ADAS, and integrated mobility strategies.

What automakers need under the hood

To make these models sustainable, automakers need a robust digital and financial backbone.

  • Entitlement and feature management to govern which drivers and vehicles can access which software capabilities, aligned with subscriptions, trials, and promotions.
  • Usage and event metering to count miles, days, activations, or data consumption for hybrid pricing and to detect anomalies or abuse.
  • Integrated quote‑to‑cash and subscription billing so dealers, digital channels, and in‑car purchases all flow into one consistent contract and billing record.
  • Automated revenue recognition capable of handling evolving performance obligations across multi‑year vehicle lifecycles, contract modifications, and bundles that mix hardware, software, and services.

When these elements are in place, recurring revenue becomes more than an experimental upcharge; it turns into a disciplined, scalable business model that complements the sector’s broader transformation toward software‑defined, connected, and service‑centric mobility.

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Hot Tip: Break Free From ERP Bloat

Wed, Jan 21, 2026 @ 06:30 AM / by Bramasol's SAP Cloud ERP Team posted in Hot Tips, SAP Cloud ERP

Let’s talk about the elephant in the server room:
Your ERP is bloated. Over-customized. And it’s costing you more than you think.

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Trends in Recurring Revenue Subscriptions Across Industries

Sun, Jan 18, 2026 @ 07:47 AM / by David Fellers

As we move into 2026, it has become clear that the trend toward companies offering recurring revenue, subscription-based products and services is showing no signs of leveling off. In fact, it is accelerating. With leading enterprises across many industries shifting from one-time sales to a mix of subscriptions and complex product/service bundles, managing usage-based, outcome-based, and entitlement offerings is a critical factor for success.

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Hot Tip: Disconnected Systems are a Silent Killer

Mon, Jan 12, 2026 @ 07:38 AM / by Bramasol's SAP Cloud ERP Team posted in Hot Tips, SAP Cloud ERP

Let’s talk about the silent killer of business performance: disconnected systems.

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C-Suite Roles are Shifting in Response to Cloud, AI, and Digital Transformation

Wed, Dec 10, 2025 @ 07:34 AM / by David Fellers

The global economy is undergoing a profound transformation. Products are turning into platforms, services are being bundled with data and experiences, and value is shifting from one-time transactions to continuous relationships. This new paradigm, known as the Digital Solutions Economy (DSE), is redefining how companies create, deliver, and monetize value. It’s an economy built on subscriptions, usage-based billing, outcome-driven engagements, and dynamic bundling of products and services.

In parallel, the shift to Cloud ERP is turning core processes into configurable, continuously updated services, with enterprise AI (such as gen-AI, predictive, & agentic) across finance, supply chain, commercial, and service layers, feeding decisions with real-time telemetry and AI analytics. Meanwhile, DSE models (subscriptions, pay-as-you-go, outcome SLAs, bundling of products + services + data) are shifting revenue profiles, cash flow timing, and customer success motions.

At the center of these transformational changes, SAP provides a comprehensive technology platform, based around an end-to-end, cloud-based, intelligent digital core that connects and unifies processes across finance, sales, service, and supply chain. Partnering alongside SAP is Bramasol, a long-time innovation leader helping enterprises turn these technologies into real-world growth, compliance, and performance.

How C-Suite Roles are Changing

CEO: From strategy and oversight to orchestration of an AI-enabled business

The CEO’s role is transforming from managing various operational silos to orchestrating growth across the enterprise and throughout the entire customer lifecycle.

New mandates:

  • Business model agility: Rapidly test/launch hybrid offers (hardware + software + services + data) with dynamic bundling and price experimentation; scale what wins.
  • Operating model convergence: Collapse silos between Sales, Product, Finance, and Service into Revenue Operations (RevOps) and Customer Success spine powered by the ERP + CPQ + billing + RevRec stack.
  • AI ambition with guardrails: Set enterprise AI North Star defining where to differentiate vs. standardize, along with clear risk and ethics boundaries.

Key CEO decisions

  • Approve a portfolio governance cadence with quarterly lifecycle reviews (create → price → sell → bill → renew → expand → retire).
  • Sponsor a connected-data program to unify product, customer, usage, financial and service data as strategic assets (not IT projects).
  • Tie leadership incentives to Lifetime Value (LTV) and Customer Acquisition Cost (CAC), focusing on expansion of Annual Recurring Revenue (ARR), Monthly Recurring Revenue (MRR) net revenue retention (NRR), attach/upsell, and time-to-value.

CFO: From historical reporter to subscription economics architect

For DSE and digital transformation, the CFO becomes the economic architect of the business model. Instead of primarily analyzing and reporting on results, finance now shapes monetization strategy and ensures every revenue stream is compliant, auditable, and predictable.

New mandates:

  • Revenue architecture: Own the compliance-safe bridge from quote → contract → usage → invoice → revenue recognition (ASC 606/IFRS 15), including Standalone Selling Price (SSP) management for bundles and promotions.
  • Predictive finance: Use AI to forecast ARR/MRR, cash collections, churn/expansion, and scenario test pricing/packaging changes before go-live.
  • Monetization governance: Chair a Monetization Council (pricing, offers, incentives, discounting thresholds) with real-time guardrails embedded in CPQ and billing.
  • Close and compliance automation: Drive continuous close, automated reconciliations, anomaly detection, and policy enforcement.

CFO dashboards/KPIs:

  • Topline: ARR/MRR, NRR, Gross Revenue Retention (GRR), bookings mix (new vs. expansion), attach & bundle penetration, usage, bill yield.
  • Profitability: Gross margin by offer, cloud COGS, service utilization, promotional leakage.
  • Cash: Billings, collections velocity, DSO, renewal cash profile.
  • Controls: RevRec exceptions, SSP variance, quote/contract policy breaches, audit-ready traceability.

CIO: From systems owner to platform and data product GM

For CIOs, the DSE era requires a clean-core ERP that can adapt quickly to new offers and partnerships. CIOs design and implement composable architectures using SAP S/4HANA Cloud and the SAP Business Technology Platform (BTP)—keeping the ERP core stable while enabling agility at the edges.

New mandates:

  • Composability & integration: Operate the ERP as the stable core with API-first edges (CPQ, BRIM/billing, commerce, CX, service). Deliver a clean core with extensibility via side-by-side services.
  • Data & AI platformization: Productizing data across multiple views (customer 360, product 360, usage 360, financial 360). Governing features and secure access patterns for AI agents.
  • AI in production: Stand up AI Ops and ML Ops pipelines, prompt/feature stores, evaluation harnesses, and drift monitoring. Make “human-in-the-loop” and policy-as-code enforceable.
  • Cyber & trust: Secure PII/usage/financial data; implement privacy-preserving analytics and vendor risk management for AI models.

CIO success metrics

  • Time-to-launch for new offers, percent of processes automated, API reuse capabilities,
  • Cost-to-serve per transaction, model performance/SLA, and security posture (mean time to detect/respond).

How the Digital Solutions Economy (DSE) is Altering the Landscape

DSE is more than a new billing model—it’s a business transformation. Companies in every industry are moving toward models where customers pay for what they use, what they achieve, or the outcomes they experience, rather than simply owning a product.
Key DSE characteristics include:

1) Subscription & usage-based monetization

  • Design: Flexible rate plans (tiered, volume, commit + overage), trials, promotions; usage instrumentation from devices/apps.
  • Finance impact: Deferred revenue, variable consideration, SSP across bundles; need for auditable, automated RevRec.
  • Data loop: Telemetry → entitlement → billing → revenue → product roadmap.

2) Dynamic bundling & lifecycle offers

  • Real-time Configure, Price, Quote (CPQ) guardrails for compatibility, regulatory rules, and margin floors.
  • CFO sets pricing corridors and AI proposes cross-sell/upsell bundles based on persona, segment, and observed usage.
  • Post-sale customer success motions (adoption playbooks) influence expansion of ARR and churn prevention.

3) Service-led growth

  • Outcome SLAs, predictive maintenance, and AI support copilots reduce downtime and create expansion paths.
  • Unified cost-to-serve and margin visibility at the offer + account level enables surgical pricing changes.

Summary

In the Digital Solutions Economy, success isn’t about selling more things—it’s about building enduring value. With SAP as the end-to-end intelligent core and Bramasol as your guide, that future is already within reach. With Bramasol and SAP, companies are able to enable new DSE models and transform enterprise-wide processes to achieve overarching benefits, including:

  • Time-to-Market Agility: Launch new subscription and usage-based offerings in weeks, not months.
  • Lifecycle Revenue Intelligence: Real-time visibility into ARR, NRR, margin by offer, and renewal health.
  • Sustainability Integration: Embedding ESG and “triple bottom line” reporting into the business model.
  • Cross-Functional Alignment: A unified KPI framework linking strategy, finance, and operations around customer lifetime value.

This is the new enterprise model: agile, intelligent, and financially transparent.

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Managing Post Go-Live Transitions - from Hypercare to SAP AMS

Thu, Nov 20, 2025 @ 04:26 AM / by David Fellers posted in CEO perspective, Thought Leadership, Hyperscaling, SAP Cloud ERP, AWS, hypercare

Going live with a new SAP solution is a major milestone—but it is not the finish line. In today’s fast-paced Digital Solutions Economy, organizations depend on stable, scalable, compliant, and continuously available systems. That means what happens after go-live is just as critical as the implementation itself.

At Bramasol, we’ve seen first-hand that companies who invest in a structured period of transitional hypercare not only stabilize their SAP environment more rapidly; but also position themselves for long-term performance through ongoing success with SAP Application Management Services (SAP AMS).

This Insights post explores why hypercare matters, what it should include, and how it becomes the natural bridge into AMS managed hosting and continuous improvement.

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Why Attend the Webinar on CPQ?

Wed, Nov 5, 2025 @ 04:11 AM / by Bramasol's SAP Cloud ERP Team

Find out Why We're Excited to Dive Deep into CPQ!

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