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.
To win in this fast changing competitive landscape, companies need adaptable and scalable solutions for quote‑to‑cash, subscription billing, and automated revenue recognition that are tightly integrated within their overall ERP and finance systems.
Summary of Recurring Revenue Trends
- Hybrid pricing models dominate: Subscriptions are increasingly combined with usage and overage components (e.g., API calls, data volume, feature unlocks), creating hybrid revenue structures instead of simple flat fees.
- Device‑centric subscriptions: Connected devices (IoT, telematics, industrial equipment, and medical hardware) are being monetized through ongoing software, analytics, and service layers rather than hardware margin alone.
- Real‑time revenue intelligence: Billing and finance teams are moving from batch billing and month‑end true‑ups to near real‑time visibility into usage, revenue, and churn risk to close books faster and reduce leakage.
Industry-Specific Patterns
- Software & high tech: SaaS and AI‑native products are pushing for flexible pricing (tiers + usage), self‑service upgrades, and fast experimentation, requiring highly configurable billing and revenue tooling.
- Semiconductors & hardware‑adjacent tech: As value shifts toward data‑center/AI and software‑defined platforms, chip and system vendors increasingly bundle software, licenses, and services under recurring and multi‑year agreements.
- Medical devices & IoT equipment: “Device‑plus‑service” models turn capital equipment into platforms with ongoing software, remote monitoring, and analytics subscriptions, demanding compliant revenue recognition and contract management.
- Automotive / SDV: Software‑defined vehicles monetize in‑vehicle features, infotainment, and performance upgrades as “features‑as‑a‑service”, with over-the-air (OTA) updates and in‑car payments creating continuous subscription and usage revenue streams.
Technology needs: quote‑to‑cash, billing, rev rec
- Integrated quote‑to‑cash: Configure‑price‑quote (CPQ) must handle complex bundles (hardware + software + service), multi‑year ramp deals, term renewals, and regional pricing, then flow cleanly into contracts, billing, and GL. Converged QTC platforms are used to cut manual re‑entry, reduce revenue leakage, and shorten month‑end close by building compliance rules (e.g., ASC 606) into the quote and contract stage.
- Modern subscription and usage billing: Systems must ingest high‑volume usage in real time, apply tiered/credit/overage rules, and produce clear invoices that reflect complex plans across geographies and channels. Automated recurring payments, dunning, and multi‑currency support are now baseline, especially as subscription and recurring models expand far beyond software into bundles and other services.
- Automated, standards‑compliant revenue recognition: Finance needs tools that can recognize revenue over time based on performance obligations, usage, and milestones, with predictive accounting to support forecasting and audits. Tight linkage between billing events, contract terms, and revenue schedules is essential so complex offerings (bundles, upgrades, feature toggles) remain compliant without heavy spreadsheet work.
How SAP Solutions Support These Models
- SAP S/4HANA Cloud (public and private):
- Provides core Cloud ERP with predictive accounting and embedded revenue recognition, helping manage subscription and service revenue in line with standards while improving forecast accuracy.
- Joule‑based AI agents in SAP Cloud ERP assist in subscription management and finance, automating order setup, pricing term selection, and anomaly detection across finance and supply processes.
- SAP Subscription Billing:
- Manages the full subscription lifecycle (products, pricing, rating, billing, invoicing) and supports flexible subscription and usage‑based scenarios for digital and device‑centric businesses.
- Integrates directly with SAP S/4HANA Cloud for sales billing and financials, enabling automated data transfer, extensible mapping, and consistent master data for scalable recurring revenue operations.
- SAP CPQ and Quote‑to‑Cash:
- SAP’s CPQ capabilities configure complex offerings and feed clean, structured data into SAP Subscription Billing and S/4HANA so that billing and revenue recognition are correct “by design” from the quote.
- A unified SAP quote‑to‑cash stack reduces manual handoffs, improves contract accuracy, and supports faster close cycles, which is critical for high‑growth subscription and hybrid revenue businesses.
Summary
SAP and Bramasol work closely together to assess clients' specific requirements and to deliver quote‑to‑cash, subscription billing, and revenue recognition solutions within a cohesive landscape that supports both rapid wins and long‑term scalability, by combining SAP Cloud ERP, SAP Subscription Billing, and integrated event‑based revenue recognition.
By leveraging Bramasol’s industry‑specific packaged solutions, combined with deep CPQ, Subscription Billing, Quote‑to‑Cash expertise, organizations in sectors like high tech, subscription services, and other recurring‑revenue industries can go live in as little as three months while establishing a robust foundation for future expansion, compliance, and innovation.