In the subscription world, you must understand the lifetime relationship with the customer – all the upsells and renewals and how they all build on one another. You also must understand the revenue, billings, and cash derived from those-again, over the entire lifetime of the customer relationship.
In an ASC-606 world, you must track all performance obligations, which is a fancy term for your promises – both the ones explicitly written in your customer agreement and all those pesky side terms that your sales rep slipped into the free-text field on the quote. You must also know all the implicit promises that people make in the deal or that have become ingrained in your business processes.
Source: How the subscription paradigm flips the cloud financials market
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