Industry White Papers

The initial wave of software-as-a-service (SaaS) was characterized by “one-size-fits-all” pricing. This was largely because SaaS vendors were out to
pioneer a new market – and simplicity was a cornerstone of their pitch to early adopters. The offer of extremely simple and economical pricing helped these vendors overcome whatever resistance they may have encountered to a new and unproven model for software delivery.

With increasing adoption of cloud services, the SaaS marketplace has changed dramatically. SaaS and other on-demand models have now been fully embraced as compelling alternatives to traditional on-premises software deployment for many reasons.

Unfortunately, many SaaS vendors still employ a one-price licensing model, even though customers have already demonstrated their acceptance of – and even preference for – pricing that more accurately reflects the actual value that a SaaS solution delivers.

This white paper discusses the two core business problems that impact SaaS vendors that don’t move beyond the one-price SaaS model.

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