SaaS Business Model

As SaaS ISVs (Independent Software Vendor) no longer rely upon large software licence payments, ISV has to compensate by repidly building subscription revenue:

SaaS Revenue = NU*PM = NU*(MS*NM)

NU= Number of end users

PM= Pricing model

MS= Monthly subscription

NM= Number of months

Variety of SaaS pricing models:

• Number of users
• Concurrent users
• Fee per company
• per period
• Fee per branch (per business entity)
• Fee per country
• Fee per transaction
• Fee per bandhwidth
• Fee per storeage
• Fee per Data volume
  

Specific functionality that must be present in a SaaS application

• Pricing engine
• Billing engine
• Payment processing
• Tenant management
• Subscription management
• Service provisioning
• Usage monitoring
• Performance monitoring
• Subscriber management

Skill set to build and operating SaaS

Skills for building SaaS:

1) Data Architecture
2) Infrasturcture Architecture
3) Product management
4) Scrum, Agile
5) Web/RAI design
6) Testing

Skills for operating SaaS:

1) Infrastructure management
2) Marketing and sales
3) Performance monitoring
4) Customer service and tech support

Bessemer 5 Cs of SaaS Finance

Bessemer 5 Cs of SaaS Finance

View more OpenOffice presentations from Philippe Botteri.

What is SaaS?

For enduser:

Renting software(s) with very less cost, no maintanance, no depreciation.

Uses:

- Low costs
- No Hardware
- No Software purchase and updates
- No Support staff
- Easy setup
- Access from anywhere
- Unsubscribe anytime
- No Administration


For software companies:

Creating a reusable service model.