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Profitability: SaaS Vs. On-Premise Solutions

Though SaaS is being increasingly adopted and even considered, by some, as a savior model in this economy (due to the zero upfront CAPEX for buyers), the question still remains if SaaS is a profitable model for solution providers. Regardless of the longer sales cycles, is the on-premise solution providing faster break-even?

Aspire Systems hosted a webinar recently, where Amy Wohl of Wohl Associates and Alex Ginger, Director of Active Operations Management International, a SaaS provider, discussed the two business models, in light of the current economic situation.

Some key take-aways from this session:

  • How SaaS is redefining the software market
  • Difference between on-premise and on-demand models: a)Differences in software development – when building a new SaaS product, migrating an existing product to SaaS, or supporting both the traditional and on-demand models.
    b) Differences in operations – maintenance, support and on-going relationship with customers
    c) Differences in sales & marketing – various channels and costs associated with it
  • Need for the SaaS Business Model
  • Case study of a successful SaaS solution – Workware™
  • Managing SaaS profitability – key factors influencing cost and revenue, that contribute to profitability

Click here to view the recorded webinar or here to view the presentation.

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