SaaS - new software model, new challenges
Another interesting blog article on the the SaaS model, hosting, compensation, VC funding, cash flow, pricing and usability. Excellent read.
Sneak Preview:
- it takes 70% to 100% more capital to fund a SaaS company
- SaaS companies need an average of $35M in VC capital, versus $20M for a similar perpetual license company
- Engineers must design in user customization
- Hosting is a big deal
- How do software companies price their SaaS offerings?
