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The next step is to model the REVENUE impact of transforming a portion of your business to a cloud and/or
recurring revenue model.

Revenue Comparison Assumptions

$7.0 M • Sample is a solution provider with
$6.5 M $5M in revenue.
$6.0 M
• Cloud represents 10% of business
in YR1 growing to 25% in YR4

$5.5 M • Cloud deals are 50% of the size of
$5.0 M on-premise Solutions
$4.5 M
• On premise revenue is growing at
5% per year

$4.0 M • Company growth achieved is 7 –
20% over 4 years
Year 1 Year 2 Year 3 Year 4

Revenue - On premise Only Revenue - Balanced Practice

The data contained in this chart is illustrative. Assumptions are included at “ We are seeing 20-25% growth in our cloud ”
the back of this document. .
business vs. 5% in our on-premise
business…
– Cisco Cloud Provider

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