What are the advantages of the SaaS business model?

Many well established software sellers are having to weigh the advantages and costs of shifting to the SaaS (Software-as-a-Service) model in 2018. We’ve taken some time to put together a short list of the main pros of transitioning to a cloud-based, SaaS business model with your software.

Recurring revenue

Of course, at the top of the list is the fact that the SaaS model allows you to charge users monthly or annually instead of once, which is a pretty enticing incentive to hurdle the price of entry into the SaaS market (more about that later). What’s more, subscription-based services are continuing to replace old pricing models across numerous industries (take Spotify and Netflix as examples), which means that people are more open now than ever before to being charged on an ongoing basis.

Streamlined distribution

A customer can purchase your software and begin using it immediately on the cloud. If she’s paying for it monthly, she knows that at anytime she can cancel her subscription. What’s the benefit of that? She has far less hesitation about trying it out in the first place, and if it’s the right thing for her, she’ll stick with it.

Keeping up with technology

As previously mentioned, the subscription pricing model is becoming the norm across many industries. Similarly, SaaS is becoming the norm within the software industry. Thus there is a growing number of software buyers that are specifically seeking a SaaS solution.

Cloud hosting for SaaS sellers

Datamark Live is a recently launched cloud hosting solution for software sellers. We’d be happy to put together a free demo to show you your software running on the cloud. To learn more, please take approximately 45 seconds to fill out our contact form.

Leave a Reply

Your email address will not be published. Required fields are marked *