Tyler Technologies is the leading software vendor that focuses solely on the public sector in the U.S. At first glance, the growth and/or margin profile of the company may not seem as exciting as other high growth enterprise SaaS companies. But to fully appreciate the unique opportunity at Tyler, one must first understand the nuances of the public sector.
does the fact that the end customer (government) not have a profit motive affect Tyler downstream in pricing negotiations and growth rate? what if gov budget needs to go into austerity?
Not sure if the non-profit aspect of government customers impacts pricing. The company has mentioned that annual price increases on maintenance is 4%-5% per year. And that's known by all parties at the signing of the deal. I think what's most important is that government entities want to meet their annual budgets. So as long as there aren't any surprises, the customer is fine with it.
does the fact that the end customer (government) not have a profit motive affect Tyler downstream in pricing negotiations and growth rate? what if gov budget needs to go into austerity?
Not sure if the non-profit aspect of government customers impacts pricing. The company has mentioned that annual price increases on maintenance is 4%-5% per year. And that's known by all parties at the signing of the deal. I think what's most important is that government entities want to meet their annual budgets. So as long as there aren't any surprises, the customer is fine with it.