Gerber Technology Consulting Project - Case Study
Gerber Technology is a mature company with a rich history of innovation in the apparel industry. Since introducing the first automated cutting machine over 40 years ago Gerber has led the the industry in working with customers to implement solutions that improve productivity, speed the development of products to the market, and improve profitability. Today, Gerber Technology offers a product lifecycle management software solution that helps customers "connect their creative teams with their supply chain to get the right products to market, on time and at the right cost."
What was the Gerber Technology consulting business issue?
Gerber Software, a subsidiary of Gerber Technology, was evaluating a potential shift from a perpetual license sales model to a subscription sales model and were looking for a consultant with significant expertise in this transitory process. The two business strategies have significant differences and require management to focus on various metrics to measure success and highlight operating and financial hurdles associated with this business model shift.
Why did Gerber Technology approach Cordes Consulting?
To support this effort, Gerber was looking for an experienced SaaS financial consultant with significant expertise in this transitory process and turned to Cordes Consulting for support. Cordes Consulting has worked with companies in the past that have sold perpetual licenses, subscription licenses and a mix of the two. Cordes Consulting knows how challenging this business model shift can be and knows how to put the proper structure in place to execute this shift properly.
What did Cordes Consulting deliver?
The Gerber Technology consulting engagement focused on evaluating a potential shift from a perpetual license sales model, to a subscription based sales model. This complex assignment required the build out of a strategic plan and financial model covering the transition process. Particular emphasis was placed on the revenue mix as the legacy maintenance revenue stream slowly converted to recurring subscription revenue. In addition, Gerber Technology management needed tools to help them spot issues in MRR and CAC metrics, something that is not relevant to a perpetual license business model.
What does Gerber Technology management think of Cordes Consulting?
"We brought in Cordes Consulting to help us transition from a legacy perpetual license sales model to a subscription sales model given their expertise within SaaS. Will and the Cordes Consulting team proved to be very knowledgeable of the space and worked hand-in-hand with our team every step of the way. Cordes Consulting would be an asset to any software business in need of financial and business modeling services."
- Karsten Newbury, Gerber Technology, SVP and GM