SaaS and recurring revenue model: Making the numbers work
Software as a Service (SaaS) has become a popular way to deliver complicated and often expensive software solutions to a wider audience.
In the traditional software world, companies did most of their business via “perpetual” software licenses. This meant that customers purchased the software and the in-house hardware necessary to use the computer program. Although the customer owned the software in perpetuity, it could get very expensive and complex to deploy and maintain. In some cases, the costs and complexity of this system excluded small and mid-sized businesses from using certain software.
With SaaS, instead of purchasing the software outright, companies can effectively “rent” the software on a monthly, quarterly or annual basis—hence the term software as a service. The software is usually deployed on servers outside the organization and is accessed over the internet. The customer no longer has to worry about maintenance or hardware costs. Continue reading



















