March 2013
Beginner to intermediate
437 pages
11h 56m
English
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Chapter 9. Model Two: Software as a Service (SaaS)
A SaaS company offers software on an on-demand basis, usually delivered through a website it operates. Salesforce, Gmail, Basecamp, and Asana are all examples of popular SaaS products. If you’re running a SaaS business, here’s what you need to know about metrics.
Most SaaS providers generate revenue from a monthly (or yearly) subscription that users pay. Some charge on a consumption basis—for storage, for bandwidth, or for compute cycles—although this is largely confined to Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) cloud computing companies today.
Many SaaS providers offer a tiered model of their service, where the monthly fee varies depending on some dimension of the application. This might be the number of projects in a project management tool, or the number of customers in a customer relationship management application. Finding the best mix of these tiers and prices is a constant challenge, and SaaS companies invest considerable effort in finding ways to upsell a user to higher, more lucrative tiers.
Because the incremental cost of adding another customer to a SaaS service is negligible—think of how little it costs Skype to add a new user—many SaaS providers use a freemium model of customer acquisition.[29] Customers can start using a free version of the service that’s constrained, in the hopes that they’ll consume all the free capacity and pay for more. Dropbox, for example, gives subscribers a few gigabytes ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.