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EITF 08-1 Estimated Selling Price Analysis For SaaS vs Non-SaaS? (Webinar Attendee Question)

Asked on May 9, 2013

Do you do EITF 08-1 ESP (Estimated Selling Price) analysis the same for SaaS products as you do for non-SaaS products?

This question was asked by an attendee during the Proformative webinar "Taming Revenue Recognition to Ensure Compliance" held on December 6, 2012. Please join the discussion and add your insights below.

A video of the webinar can be viewed here: https://www.proformative.com/resources/webinar-video-taming-revenue-recognition-ensure-compliance-0

Answers

Doug Thompson Director of Revenue • December 8, 2012

If I understand the question correctly, the answer is yes. Unless the "products" are software, in which case you are under 97-2 and cannot use ESP, you have to use VSOE. SaaS products are not considered software (if customer cannot just bring it in house at any time etc).

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