SaaS Business Profitability – Build for the long tail and get the rest for free (almost)
The following is an excerpt from a guest post I wrote for SaaSBlogs
Most SaaS businesses embrace the idea that Web-based delivery and a multi-tenant architecture create economies-of-scale and lower TCO. Hence, they price their annual subscriptions at 1/5 to 1/20 the cost of an enterprise license. However, these savings only occur in R&D and IT infrastructure. Achieving a stable, profitable long term cost structure requires proportionate expense reductions in sales, marketing and support operations.…But how?
The goal of this blog is to share knowledge and opinions that will help executives at Internet software companies that create and deliver B2B, B2C and B2B2C software-as-a-service ( SaaS ) applications critically analyze real-world, go-to-market strategies and tactics by applying sound business principles
