The commitment horizon

How far forward the contracted revenue actually extends.

The part

What it is

Recurring revenue with thirty days’ notice on every contract is recurring in name and monthly in fact.

The weighted average remaining term is the honest version of this number, and it is rarely as long as the headline suggests.

The smallest level

The attributes it carries

Each attribute is one of the framework’s shared types. What a date is, and how it is written, is defined once for the whole model — the note here says what it means in this particular place.

Remaining term
Weighted average time left on contracts, which is the real horizon.
Duration shared type
Notice period
How quickly a customer can leave, which caps the horizon regardless of term.
Duration shared type
Committed value
What is actually contracted forward rather than expected.
Money shared type