Strategic Transformation at kgs:
Migration to a SaaS Model

kgs successfully transitioned from perpetual licenses to a component-based subscription model through a new pricing logic and tailored migration strategies, significantly accelerating ARR growth.

Enterprise Software

Pricing Strategy, License Migration, SaaS

Challenge

kgs, a provider of archiving and data management solutions, introduced a new product line with a flexible, component-based pricing model. The key challenge was to migrate existing customers from perpetual licenses to the new subscription model—without jeopardizing customer relationships or risking revenue losses.
The objective was to develop a well-founded migration strategy, including a pricing model and a clear implementation plan.

Solution

We developed customer-specific pricing packages tailored to actual usage, functional requirements, and the value contribution of the software within each organization. Based on in-depth segmentation and competitive analysis, tiered offerings were created to enable targeted upselling. Customers with higher usage levels received clear added value through functional extensions and corresponding price points.

A comprehensive toolkit—including a planning tool, sales FAQs, and negotiation guidelines—supported the commercial rollout and ensured that every offer could be communicated clearly, consistently, and convincingly.

Impact

The customer-specific migration strategy enabled targeted communication and high acceptance among existing customers. Clearly structured packages and a compelling value proposition allowed even sensitive customers to be successfully transitioned to the new subscription model.

As a result, kgs achieved significantly higher, double-digit annual growth in Annual Recurring Revenue (ARR) over several years. At the same time, a scalable and future-proof pricing and business model was established, providing long-term revenue stability and planning reliability.

Short facts

  • Client: kgs (specialist in archiving and data management solutions)

  • Industry: Enterprise Software/SAP Data Management

  • Challenge: Low-risk migration of existing customers from perpetual licenses to a new, component-based subscription model.

  • Our role: Developing customer-specific pricing packages, value-based segmentation, and creating a sales toolset to support negotiations.

  • Impact: Sustained double-digit ARR growth and the successful transition of sensitive existing customers to a future-proof business model.

Say hy!
“Thanks to the close and professional collaboration, we were able to successfully transform our business model; the new pricing logic and migration strategy are now key drivers of our growth.”
Boris Klenk
Investor GENUI
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What our clients say about us:

Thanks to hy’s entrepreneurial experience, we were able to define an agile expansion concept for entering a new market.
Frank KleinerCEO Harry Brot
Frank Kleiner
hy is our key to the startup ecosystem. Through their strong network, we were able to establish our venturing activities within just a few weeks.
Matthias Hoyer CEO Hoyer Handel
Matthias Hoyer
With hy, we are able to accelerate our entrepreneurial projects quickly and without unnecessary complexity.
Marc WilleCEO CUBOS
Marc Wille
hy’s team are not just consultants to us, but important companions and supporters on our journey.
Dr. Hadi SalehCEO CeramTec
Dr. Hadi Saleh
hy understands the ‘so what’ for its clients — extremely valuable for our strategic work.
Antje Leminskyex-CEO Grenke
Antje Leminsky
hy’s support in digital M&A activities is of great value to us.
Rüdiger Behn Waldemar Behn
Rüdiger Behn
The hy team immersed itself in our challenges very quickly; their hands-on mentality delivered fast results.
Sven SieringGeschäftsführer vent.io
Sven Siering
hy has an excellent overview of new B2B business models. For us, this represents the ideal balance between intellectual rigor and practical conclusions.
David DoyleVP Strategy & Innovation Lufthansa Technik
David Doyle
New digital business models in industry are tricky — with hy, we found the one that fits us.
Dr. Philipp Sauterex-Head of Corporate Venturing Trumpf
Dr. Philipp Sauter
hy’s consultants convinced me with their authentic experience and hands-on attitude.
Michaela BessellHead of Ecosystem Henkel dx
Michaela Bessell
The hy team understands the challenges of innovation units, startups, and large corporations — and combines power with empathy.
Patrick WirthManaging Director Baloise Mobility
Patrick Wirth
hy complements our technical experts as a co-preneur in our innovation program.
Sebastian TietzDirector Open Innovation Bosch
Sebastian Tietz
The hy team measures itself by results. Their fee is linked to the project’s upside. That’s not how consultants think — that’s how entrepreneurs think.
Dr. Andreas Spiegel Founder DRS Investment
Dr. Andreas Spiegel
With hy’s “Pricing Friends,” I have found the ideal sparring partners for pricing and sales topics.
Joanna AlbrechtVice President Deutsche Private Equity
Joanna Albrecht
hy strongly tailors its solutions to the client and their specific needs instead of working with off-the-shelf solutions.
Boris KlenkInvestor GENUI
Boris Klenk
hy’s analysis was pragmatic, concrete, and on point. Overall, a very solid assessment of the situation.
Dr. Joachim DettmarOperating Partner IK Partners
Dr. Joachim Dettmar

We look forward to hearing from you and will get back to you as soon as possible.

Say hy!