A Charter for Long-term Digital Preservation Sustainability | Preservica.com | March 2022
ioi_ab's bookmarks 2022-06-27
Summary:
"Digital Preservation is by its very nature a long-term venture. Partnering with the right Digital Preservation service provider over the long term should also be a carefully considered decision. This is echoed by Ithaka S+R in a recently announced study into the long-term sustainability and durability of Digital Preservation services:
“The long-term stewardship of digital materials depends not only on the technical resiliency of preservation systems, but also on the financial and organizational sustainability of these stewarding organizations and their service providers.”
This Sustainability Charter is designed to help organizations assess the long-term sustainability and durability of digital preservation service providers and has been independently reviewed and ratified by a working group of major institutions and industry professionals from across the globe. The Charter incorporates 7 Sustainability Principles that go beyond product functionality to encompass broader long-term sustainability dependencies such as how a provider manages customer’s data, develops and innovates software, operates the service, engages with users and partners, ensures long-term financial viability, practices good corporate governance and importantly, addresses the environmental impact of its business and services....
5. Financial Sustainability: Perhaps the most important aspect of sustainability is the one rarely discussed. To be confident of delivering services into the future your chosen provider must also have a long-term strategy and a financially sustainable and resilient business model.
Principle: Providers should have a resilient business model built on a predictable annual recurring revenue (ARR) from subscriptions (at least 80% of total revenue) and not dependent on large one-off projects. What it means for organizations: You and your provider can confidently plan ahead. Your provider can invest in resources to deliver a roadmap of continuous product & service enhancements
Principle: Providers should have a large and diverse customer base (different size organizations across different industries and geographies) to ensure greater financial resilience. What it means for organizations: Your provider is more resilient to changing economic conditions across different sectors. Your provider can invest in resources to deliver continuous product & service enhancements.
Principle: Providers should have high levels of customer satisfaction and retention (using NPS), <5% Revenue Churn and an NRR (Net Revenue Rate) of 100% or more). What it means for organizations: Your provider is able to forward plan to maintain the highest levels of service, support and new product enhancements.
Principle: Providers should have a clear and transparent source of funding, a resilient operating cashflow and a careful balance between investment in new software development and long-term profitability. What it means for organizations: Prudent financial management ensures long-term sustainability and resilience of your provider.
Principle: Providers should ensure all annual accounts are audited by an independent external third-party. What it means for organizations: Trust in accuracy and independence of financial reporting and stability of organisation...."