Site Archives NetSuite

Is SaaS About Maximum Profit for the Provider?


I recently read and commented on a good post over at Unreasonablemen.net titled “How Do SaaS companies make money“. In summary, the article highlights the fact that SaaS companies have an alarmingly low EBIT, high marketing spend rate, and no mechanism for getting “upgrade fees.” While this is all true, I wouldn’t use the word alarming. In the comments […]

The SaaS Investment Landscape


Although many in the SaaS-choir have long since been sold on SaaS, it seems that venture capitalists are finally joining us.  Existing firms are padding their portfolios with SaaS companies.  More interesting, though, is the fact that firms are forming with core strategies focused on SaaS investment.  Why is this?  Perhaps the most definitive evidence comes from market research […]

Do Traditional Channels Matter in a SaaS World?


From the vendor’s perspective, SaaS is more than just a distribution model; it’s a new way of doing business. Many of you have heard it before; no more large license-fee deals, issues with compensating your sales team, planning around incrementally growing yet recurring revenue, etc. The single most important question, however, is “How do I […]