The software is being used to "capture, classify, process, act upon and analyze more than 20 million financial documents received from customers each year."
Certainly a solid deal for Kofax, especially because it includes two pieces of software that are separate from its legacy (as a capture ISV) and geared toward its future vision of serving the SPA market. That said, it's worth noting that software licenses made up less than one-third of the total price of the deal. Is this going to be the standard SPA sales model due to the complexity of the implementations? As a comparison to Kofax's legacy model, for the six months ended Dec. 31, software licenses made up about 40% of Kofax's total revenue with maintenance and professional services making up the remaining 60%. In that regard, the recent SPA deal doesn't seem like that big a departure from Kofax's traditional revenue model - although it's probably worth considering that the six-month period includes maintenance contracts related to more than 15 years of software sales, which should push that percentage higher than what you'd expect as related to a one-time deal. Do you know what I'm saying?
Anyhow, I guess it's natural that as Kofax moved into more complex SPA solutions its professional services revenue should rise - as in addition to more complexity, many professional services related to capture deals have historically been managed by resellers. It will be interesting to see how this affects Kofax's long-term profitability.