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Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Disaggregation of Revenue
The following table summarizes revenue:
Three Months EndedNine Months Ended
(in thousands, except percentages)September 30,
2020		September 30,
2019		September 30,
2020		September 30,
2019
Revenue:
Lease licenses$78,917 $70,693 $237,000 $239,953 
Perpetual licenses62,705 66,451 161,793 190,734 
Software licenses141,622 137,144 398,793 430,687 
Maintenance211,942 193,189 615,609 559,768 
Service13,401 13,566 43,209 39,209 
Maintenance and service225,343 206,755 658,818 598,977 
Total revenue$366,965 $343,899 $1,057,611 $1,029,664 
Direct revenue, as a percentage of total revenue74.9 %76.8 %75.7 %75.9 %
Indirect revenue, as a percentage of total revenue25.1 %23.2 %24.3 %24.1 %
Our software licenses revenue is recognized up front, while maintenance and service revenue is generally recognized over the term of the contract.
Deferred Revenue
Deferred revenue consists of billings made or payments received in advance of revenue recognition from customer agreements. The timing of revenue recognition may differ from the timing of billings to customers. Payment terms vary by the type and location of customer and the products or services offered. The time between invoicing and when payment is due is not significant.
The changes in deferred revenue, inclusive of both current and long-term deferred revenue, during the nine months ended September 30, 2020 and 2019 were as follows:
(in thousands)20202019
Beginning balance – January 1$365,274 $343,174 
Acquired deferred revenue1,405 3,266 
Deferral of revenue1,025,057 991,524 
Recognition of revenue(1,057,611)(1,029,664)
Currency translation4,307 (4,985)
Ending balance – September 30$338,432 $303,315 
Total revenue allocated to remaining performance obligations as of September 30, 2020 will be recognized as revenue as follows:
(in thousands) 
Next 12 months$570,236 
Months 13-24180,873 
Months 25-3661,069 
Thereafter67,734 
Total revenue allocated to remaining performance obligations$879,912 
Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes both deferred revenue and backlog. Our backlog represents installment billings for periods beyond the current quarterly billing cycle. Revenue recognized during the nine months ended September 30, 2020 and 2019 included amounts in deferred revenue and backlog at the beginning of the period of $465.5 million and $409.1 million, respectively.