Entrepreneurship

SaaS Revisited

I was quoted in this morning’s News & Observer about software-as-a-service (SaaS) businesses. The article does a good job of summing up the basics of SaaS. Check it out.
One of the most exciting things about the SaaS business model is how it benefits customers. Because switching costs are low, SaaS-based vendors compete on providing an excellent experience for customers rather than hiding behind technological lock-in and confusing interfaces.

The SaaS business model is great for the vendor too. Because of the model is based on subscriptions, SaaS businesses typically have a high level of predictability in cash flow — a godsend when growing and managing a fast-moving company.

Quite simply — SaaS rocks.