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REVENUE (Tables)
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue by Geographic Area
Geographic revenue
(Dollars in thousands)202020192018
U.S.$613,844 61 %$525,191 57 %$469,987 52 %
Other Americas49,441 5 %60,536 7 %53,239 6 %
United Kingdom (“U.K.”)91,517 9 %87,382 10 %95,628 11 %
Europe (excluding U.K.), Middle East, and Africa 156,056 15 %137,946 15 %147,248 17 %
Asia-Pacific106,659 10 %100,328 11 %125,479 14 %
$1,017,517 100 %$911,383 100 %$891,581 100 %
Disaggregation of Revenue
(in thousands)202020192018
Perpetual license$28,558 $80,015 $109,863 
Term license266,352 199,433 178,256 
Revenue recognized at a point in time 294,910 279,448 288,119 
Maintenance296,709 280,580 263,875 
Pega Cloud208,268 133,746 82,627 
Consulting217,630 217,609 256,960 
Revenue recognized over time 722,607 631,935 603,462 
$1,017,517 $911,383 $891,581 

(in thousands)202020192018
Pega Cloud208,268 133,746 82,627 
Maintenance296,709 280,580 263,875 
Term license$266,352 $199,433 $178,256 
Subscription (1)
771,329 613,759 524,758 
Perpetual license28,558 80,015 109,863 
Consulting217,630 217,609 256,960 
Total revenue$1,017,517 $911,383 $891,581 
(1) Reflects client arrangements subject to renewal (Pega Cloud, maintenance, and term license).
Remaining Performance Obligations on Existing Contracts
The Company’s typical performance obligations are:
Performance ObligationHow Standalone Selling Price is Typically DeterminedWhen Performance Obligation is Typically SatisfiedWhen Payment is Typically Due
Perpetual licenseResidual approachUpon transfer of control to the client, defined when the client can use and benefit from the license (point in time)Effective date of the license
Term licenseResidual approachUpon transfer of control to the client, defined when the client can use and benefit from the license (point in time)Annually, or more frequently, over the term of the license
Maintenance
Consistent pricing relationship as a percentage of the related license and observable in stand-alone renewal transactions (1)
Ratably over the term of the maintenance (over time)Annually, or more frequently, over the term of the maintenance
Pega CloudResidual approachRatably over the term of the service (over time)Annually, or more frequently, over the term of the service
Consulting
- time and materials		Observable hourly rate for time and materials-based services in similar geographies for similar contract sizesBased on hours incurred to dateMonthly
Consulting
- fixed price		Observable hourly rate for time and materials-based services in similar geographies for similar contract sizes multiplied by estimated hours for the projectBased on hours incurred as a percentage of total estimated hoursAs contract milestones are achieved
(1) Technical support and software updates are considered distinct services but accounted for as a single performance obligation, as they have the same pattern of transfer to the client.
Expected future revenue on existing contracts:
December 31, 2020
(Dollars in thousands)Perpetual licenseTerm licenseMaintenancePega CloudConsultingTotal
1 year or less$11,514 $105,920 $227,803 $248,223 $19,226 $612,686 57 %
1-2 years395 7,962 54,509 193,064 346 256,276 24 %
2-3 years— 4,928 28,320 104,542 851 138,641 13 %
Greater than 3 years— 4 19,283 44,308 1,189 64,784 6 %
$11,909 $118,814 $329,915 $590,137 $21,612 $1,072,387 100 %

December 31, 2019
(Dollars in thousands)Perpetual licenseTerm licenseMaintenancePega CloudConsultingTotal
1 year or less$2,305 $97,826 $206,882 $165,571 $20,798 $493,382 58 %
1-2 years2,179 12,014 30,291 128,109 1,439 174,032 21 %
2-3 years— 3,132 17,844 84,788 132 105,896 13 %
Greater than 3 years— 3,861 13,277 43,702 1,993 62,833 8 %
$4,484 $116,833 $268,294 $422,170 $24,362 $836,143 100 %