If all of the profits are in the nth copy of software that we sell, we need to understand the Law of Build Once, Sell Many. Building for market segments is different (better) than custom development or professional services.
Logi is hosting a webinar on developing a successful Software-as-a-Service (SaaS) and business model: SaaS versus Licensed Software, Pricing Tiers, User Experience and Continuous Marketing, Service Metrics and Infrastructure Requirements.
This article captured an April 2007 talk I did at SVPMA. The original slide deck is here. I’m talking with more and more with companies considering a shift from traditional licensing models to hosted software-as-a-service (SaaS). It’s important to recognize the radical changes such a move may force within your entire company. This column serves up a metaphor for the mental and organizational adjustments needed to move from a “product” model to a service business.
Much of my consulting lately involves on-demand services (aka software-as-a-service, or “SaaS”). I’m seeing ever-growing interest from business customers in subscription pricing and online services, especially since they pay much less “up front” versus software licensing. This necessarily slows down early revenue to the vendor and intensifies the need to upsell your installed base.