We are a small shop that have developed a platform for developing applications that can run both in the cloud and on premise, A PAAS offering. You could compare it to Microsoft XRM or Salesforce - AppForce.
We are talking to a potential customer, who are considering rewriting their current application on our platform. This is all fine and we are discussing licensing models, but they also want an option to at a later time, be able to buy a non exclusive source code license where they want to be able to do what they want with it, excluding competing with us and reselling the source code.
How would this affect the value of our company, and what do you recommend for this situation?