What is SAAS and Why Is It so Revolutionary for Pricing?

Monday, May 11, 2015

Software used to be different. In order to use an application, a customer would have to go a software store, purchase a set of diskettes, drive back home, and then install the system. It was only hours later, and after much frustration, that he could begin to derive any semblance of value from the ordeal.

Now the barrier for customers to use new systems is much lower. The time of SAAS (software as a service) has arrived, and I would argue that both customers and vendors have benefited.

The advantages to the creators of the software are numerous (and outlined in my software pricing book), but software companies are still having great difficulty in explaining the benefits to their users. Potential customers continue to think that SAAS is a money grab that does not benefit them in the slightest.

How wrong they are! The main advantage of SAAS is that it enhances the economic alignment between the producer and the consumer of software systems. Let's take a look at three reasons why customers should be demanding SAAS applications.

This is not to say that SAAS pricing solves all of the world's ills, but it is one of the most impressive and misunderstood innovations in the entire software industry. Want to learn how pricing can help your business? You'll certainly want to contact us for advice!