Software-as-a-Service (SaaS) Models

What is SaaS?

The acronym “SaaS” stands for “Software as a Service”, and can be used to name any cloud-based service providing access to software application for consumers on the web. SaaS applications can have a variety of purposes for both private individuals and organizations. Famous SaaS applications are Google Search, Facebook, LinkedIn, Dropbox, Prezi or Twitter.

The main difference with traditional software is the fact that SaaS applications are rented (for free or for a price) instead of being purchased once and then installed on a computer or device. This is why SaaS is a subscription based model, with a license agreement including a certain number of limitations and restrictions.

The company making the SaaS application then has total freedom to improve, adapt and roll-out new versions of the application to its global user base as a whole. The product is therefore never obsolete, and constantly updated. Developed features are then the result of the interpretation of individual and collective customer feedback.

More on SaaS on Interoute’s website here

What are the Advantages of the SaaS Financial Model?

Generally speaking, as a client the main advantages of choosing a SaaS subscription financial model versus purchasing or building the software are:

• - Low or even inexistent hardware costs
• - No set-up costs
• - Pay according to usage
• - Scalable Usage
• - Automatic Version Updates
• - Compatibility across devices and systems
• - Access from anywhere at anytime
• - White-labeling and customization options

For companies looking to launch a product on market, the main advantages of licensing a service through a SaaS financial model are:

• - Recurring monthly/annual revenues
• - Lower revenue dependency on key clients
• - Scalability of the market on the internet and ability to automate the customer's discovery, onboarding and sales process
• - Active customer feedback, software usage data collection and analysis potential

• - A/B product testing and immediate feature roll-out

• More on advantages of SaaS by IBM - Top Five of Going For SaaS

• More on SaaS ->an in depth look into SaaS explained by Microsoft

What are the SaaS Financial Models and SaaS Dashboards needed to launch and manage a SaaS Business?

The SaaS financial model is now by far the most popular and widespread business model for startups on the internet. Hence, as the industry matures, an increasing number of methodologies, SaaS Financial Models, SaaS Dashboards and tools are produced, shared and cross-used by SaaS company founders, entrepreneurs and employees. This is true for many disciplines should this be for finance, marketing, strategy or communication.

You will find below a large collection of SaaS financial models, SaaS dashboards in Excel and methodologies for SaaS professionals to download, use and learn from. These SaaS financial models and dashboards are made and shared by renowned professionals and experts in the industry (VCs, entrepreneurs, founders, experts, academics etc.)