Table:
| % Change vs. Prior |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Year | % of Total Revenue |  |  |  |  |  |  |
|  | 2019 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | 2017 |
| (in thousands) |  |  |  |  |  |  |  |  |
| Cloud subscriptions | $46,831 | $23,104 | $9,596 | 103% | 141% | 8% | 4% | 2% |
| Software license | 48,855 | 45,368 | 72,313 | 8% | -37% | 8% | 8% | 12% |
| Maintenance | 149,230 | 147,033 | 142,988 | 1% | 3% | 24% | 26% | 24% |
| Services | 360,516 | 329,685 | 326,502 | 9% | 1% | 58% | 59% | 55% |
| Hardware | 12,517 | 13,967 | 43,190 | -10% | -68% | 2% | 3% | 7% |
| Total revenue | $617,949 | $559,157 | $594,599 | 11% | -6% | 100% | 100% | 100% |
Paragraphs:
Revenue
Our revenue consists of fees generated from cloud subscriptions, software licensing, maintenance, professional services, and hardware sales.
Cloud Subscriptions Revenue Year 2019 compared with year 2018 In 2017, we released Manhattan Active™ Solutions accelerating our business transition to cloud subscriptions. As a result, cloud subscriptions revenue increased $23.7 million, or 103%, to $46.8 million in 2019 compared to 2018 as customers began to purchase. our SaaS offerings rather than a traditional perpetual license. Our customers increasingly prefer cloud-based solutions, including existing customers that are migrating from on-premise to cloud-based offerings. Cloud subscriptions revenue for the Americas, EMEA and APAC segments increased $20.3 million, $2.7 million and $0.7 million, respectively.
Year 2018 compared with year 2017
Cloud subscriptions revenue increased $13.5 million to $23.1 million in 2018 compared to 2017 as customers began to purchase our SaaS offerings rather than a traditional perpetual license. Cloud subscriptions revenue for the Americas, EMEA and APAC segments increased $11.3 million, $1.8 million and $0.4 million, respectively. The EMEA segment began recognizing cloud subscription revenue for the first time in 2017 while the APAC segment began in 2018.
Software License Revenue Year 2019 compared with year 2018 Software license revenue increased $3.5 million to $48.9 million in 2019 compared to 2018. License revenue for the Americas and EMEA segments increased $6.1 million and $0.1 million, respectively, and license revenue for the APAC segment decreased $2.7 million, in 2019 over 2018. The perpetual license sales percentage mix across our product suite in 2019 was approximately 80% warehouse management solutions.
Year 2018 compared with year 2017 Software license revenue decreased $26.9 million to $45.4 million in 2018 compared to 2017. The decrease was influenced by (1) extended sales cycles and evaluations for some of our contracts, and (2) the business transition to cloud subscriptions, which resulted in traditional perpetual license deals closing as cloud deals based on customer demand. License revenue for the Americas and EMEA segments decreased $15.7 million and $11.5 million, respectively, in 2018 over 2017, while license revenue for the APAC segment increased $0.3 million. The perpetual license sales percentage mix across our product suite in 2018 was approximately 80% warehouse management solutions.
Software license revenue decreased $26.9 million to $45.4 million in 2018 compared to 2017. The decrease was influenced by (1)
extended sales cycles and evaluations for some of our contracts, and (2) the business transition to cloud subscriptions, which resulted
in traditional perpetual license deals closing as cloud deals based on customer demand. License revenue for the Americas and EMEA segments decreased $15.7 million and $11.5 million, respectively, in 2018 over 2017, while license revenue for the APAC segment increased $0.3 million. The perpetual license sales percentage mix across our product suite in 2018 was approximately 80% warehouse management solutions.
Maintenance Revenue
Year 2019 compared with year 2018
Maintenance revenue increased $2.2 million in 2019 compared to 2018 primarily due to (1) an increase in the first-year maintenance revenue; (2) our annual renewal rate of customers subscribing to maintenance, which was greater than 90%; and (3) increases in the maintenance renewal prices. Maintenance revenue for the Americas, EMEA and APAC segments increased $1.4 million, $0.4 million and $0.4 million, respectively, compared to 2018.
Year 2018 compared with year 2017
Maintenance revenue increased $4.0 million in 2018 compared to 2017 primarily due to (1) an increase in the first-year maintenance revenue; (2) our annual renewal rate of customers subscribing to maintenance, which was greater than 90%; and (3) increases in the maintenance renewal prices. Maintenance revenue for the Americas, EMEA and APAC segments increased $1.1 million, $2.2 million and $0.7 million, respectively, compared to 2017.
Services Revenue Year 2019 compared with year 2018 Services revenue increased $30.8 million, or 9%, in 2019 compared to 2018. The Americas, EMEA and APAC segments increased $17.8 million, $10.3 million and $2.7 million, respectively, compared to 2018.
Year 2019 compared with year 2018
Services revenue increased $30.8 million, or 9%, in 2019 compared to 2018. The Americas, EMEA and APAC segments increased $17.8 million, $10.3 million and $2.7 million, respectively, compared to 2018.
Year 2018 compared with year 2017 Services revenue increased $3.2 million in 2018 compared to 2017 primarily due to improving demand in the Americas and solid growth in EMEA. Services revenue for the Americas and EMEA segment increased $1.0 million and $6.9 million, respectively, and services revenue for the APAC segment decreased $4.7 million, compared to 2017.
Services revenue increased $3.2 million in 2018 compared to 2017 primarily due to improving demand in the Americas and solid growth in EMEA. Services revenue for the Americas and EMEA segment increased $1.0 million and $6.9 million, respectively, and services revenue for the APAC segment decreased $4.7 million, compared to 2017.
Hardware
Hardware sales, net decreased $1.5 million, or -10% in 2019 compared to 2018. We adopted the new ASC 606 standard as of
January 1, 2018 and elected to use the modified retrospective method. Historical hardware sales prior to the adoption of ASC 606
were recorded on a gross basis, as we were the principal in the transaction in accordance with the previous standard, ASC 605-45.
Under the new standard, we are an agent in the transaction as we do not physically control the hardware which we sell. Accordingly, starting January 1, 2018, we recognize our hardware revenue net of related cost which reduces both hardware revenue and cost of sales as compared to our accounting prior to 2018. For comparison purposes only, had we implemented ASC 606 using the full
retrospective method, we would have also presented hardware revenue net of cost for prior periods as shown below.
Question:
What is the change in percentage of total revenue for cloud subscriptions in 2019 and 2018?
Answer: 8%-4% = 4