Wednesday, May 27, 2009

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

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