In today’s digital world we talk about SaaS, the acronym for Software as a Service. This is a relatively new software distribution model and in this article, you can find the answer to some of the most common questions regarding the SaaS Industry.
Compared to the traditional model, in SaaS, a third-party provider hosts applications and makes them available to users over the internet. Unlike in the past, where software was purchased and installed locally on the device, with the SaaS method, the software is hosted in the cloud and can be accessed over the internet by subscription.
All the typical elements of a software; scripts, codes and algorithms, as well as the hardware, in the form of servers and the structures that host them, remain unchanged and are managed and maintained by the software provider.
The key features of SaaS are:
- Multi-tenant architecture
- Hosting on a remote server
- Accessibility through the Internet
- Management from one place
- Automatic updates
Examples of SaaS applications
The concept of SaaS began in 2000 and is associated with an essay written by Tim O’Reilly. Often, SaaS companies are synonymous with the flagship SaaS they provide. The success of many companies such as Netflix, Dropbox, Slack, Spotify and Google has made the rising SaaS industry a distinctive model of the modern digital economy.
How to gain experience in SaaS
For a reseller or system integrator (SI), SaaS requires some fine-tuning, but service providers and vendors alike agree that the channel has a role with SaaS. Especially in the small and medium business (SMB) sector, companies will continue to turn to a SaaS reseller for advice and implementation assistance.
Just as with traditional software, as a SaaS or SI reseller, you can build a business based on a high volume of less complex projects or fewer more intensive projects. If you’re targeting SMBs, you may want to focus on sales volume and making money from subscription margin, as well as consulting with clients to determine their needs. If you specialize in SaaS, you may typically spend more time on integration work and building custom applications for customers to run within the SaaS framework.
Your approach to SaaS will also depend on your provider. Some providers, such as Salesforce.com, do not allow partners to host the software, but provide a full development platform for SIs who want to customize applications for their clients. Microsoft allows its partners to customize and host its Microsoft CRM 4.0, codenamed “Titan,” which the company also hosts. Other providers may have a partner program based more on the margin of subscriptions.
As SaaS is different from traditional software, it is important that it is treated differently. To have a successful SaaS experience, keep these steps in mind:
- Track product usage: since the SaaS model provides data and statistics about your customers, you can take advantage of them;
- Avoid relying on traditional strategies: the internet is constantly changing. That’s why it’s always a good idea to change your service and release new iterations;
- Don’t stop at SaaS: is important to continue implementing attractive offers and developing strategies within the marketing plan;
- Know the opinions: connect with customers and use feedback to improve future product interactions.
How much can you make in SaaS sales?
It is necessary to have a pricing model for your product to understand how much profit you can make from SaaS sales. A good pricing model is required since no matter how good, excellent or innovative your product or service is, it must be priced reasonably in order to attract clients.
There are different price models; all of them provide certain advantages and disadvantage. The important thing is to research and potentially test the market until you find the model that fits your product.
Some of the most highly-used and effective models for SaaS businesses and start-ups include:
- Freemium: a pricing model where users have limited access to features for free. This means that users will be able to access other features by upgrading or upgrading the subscription. It is an attractive model for the user, the SaaS product is offered free with limited features, which encourages users to purchase paid plans to enjoy additional features.
- Flat Rate: used when companies charge users a single flat fee, regardless of how many people use the product. With a flat rate strategy, a fixed set of features and functionality is offered for a fixed price. One of the great advantages of this pricing model is that you will have a single clearly defined price offer, this facilitates marketing and offer tasks.
- Price Per Active User: a pricing model where subscribers are charged for each active user. Prices per active user can be said to be a modality of the “prices per user” model with the difference that the final amount charged to users is linked to the members who were active during that billing period.
Overall, choosing the pricing model that best suits your SaaS business is critical to achieving the highest possible profit. To integrate a successful pricing strategy, it is also important to take into account the characteristics of your products or services, market and target customer, which will ultimately constitute how much you can make in SaaS sales.
More About the SaaS Awards
What are the SaaS Awards?
The SaaS Awards are software awards, providing international recognition to organizations specializing in innovative business software. The SaaS Awards program aims to celebrate excellence and innovation in the area of cloud-based “solutions as a service”. Organizations of any size, any vertical and any area of the world may apply for recognition as a SaaS Award winner or nominee. Entering for recognition is a chance to make your name as an innovative software solutions provider.
Any SaaS solution is eligible: the SaaS Awards celebrate SaaS solutions across public clouds, as well as alongside private, single-tenant solutions, off-premise or on-premise. However your software solution is delivered, our software awards program is open to consider your solution. Entry to the SaaS Awards closes at the end of May.
- Software as a Service awards categories
- Frequently Asked Questions about the SaaS Awards
- How much does the SaaS Awards cost to enter?
- Why should I enter the SaaS Awards?
SaaS Awards recognition
SaaS Awards programs is the de facto recognition platform for the cloud computing and software industries.
Our mission is to celebrate the successes of as many organizations as possible, across the globe.
Shortlisted candidates receive:
- Press release to promote your success
- Materials for your print and online marketing
- Coverage in the international press
- Publication of an article all about your organization
- Link to your organization’s website
- Promotion of your article on social media
This stage is repeated, with a repeat for the benefits for candidates who progress to the Finalist stage.
Winning candidates then also receive:
- Pro-forma press release
- Opportunities for coverage in the international press
- Bonus winners’ article on the Cloud & SaaS Awards website
We hope that through this article you can understand what SaaS is, but above all understand how it suits your company and your services. We aim to accompany our clients on their own path of digital transformation. Strive as authentic digital tools trained to identify your clients’ needs, present them with the best solutions and lead them throughout the associated change process.