Making money from SaaS

November 22nd, 2008 By Scott Savage Categories: Uncategorized
Internet Cash Machine

Internet Cash Machine

The core promise of SaaS is that it will help you deliver services more efficiently. Instead of trying to manage software projects (which can easily get expensive and out of control) a company can outsource non-core development and deploy an SaaS solution almost instantly. In the current economic downturn many people have been watching SaaS vendors closely to see whether they struggle or thrive. On paper they are cheaper and allow businesses to focus on their core strengths, but would companies shun the risk and element of change in uncertain times?

There have been a few earnings announcements over the last couple of months that are proving the SaaS backers right. Salesforce is the biggest ‘flag bearer’ for SaaS solutions, and it has exceeded analyst expectations and posted a 43% revenue increase from the same quarter last year. The good news doesn’t end there however. Concur, Taleo, RightNow and many other SaaS providers are also posting record quarters.

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3 Responses to “Making money from SaaS”

  1. January 19th, 2009 at 06:49

    Your article is very interesting, i bookmarked your blog for future referrence 🙂

  2. May 4th, 2011 at 04:16

    SaaS is here to stay and it will get bigger. As the cloud becomes a more secure place to harness data more companies will be storing it there. Thanks for the post.

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