SaaStr

MARCH 1, 2024

GenAI and the Business Model Perspective From a business model perspective, a few things are happening. Amazon wasn’t built as a Cloud business or storage company. It was built as an incumbent e-commerce business. They hope to reach 50%. ARPU, ACV, and LTV are increasing.

Generative AI 298

Generative AI Outsourcing Services AI Software Review 298

CloudGeometry

JANUARY 15, 2022

There are at least three foundational dimensions that translate your business assumptions into critical technical solution inputs: User Model Monetization Measurement In this blog series, we explore how these three dimensions figure into key technical recommendations which enable scale in pursuit of SaaS business growth.

Well Architected Framework 130

Well Architected Framework DevOps as a Service AWS Traceability 130

The Angel VC

FEBRUARY 20, 2016

It could make seed and Series A investing harder because the percentage of seed and Series A funded SaaS startups that becomes really big would decrease - and VCs need large outcomes in order to make their business model work.

Scale 192

Scale Scaling SaaS AWS 192

SaaStr

AUGUST 10, 2023

They had open cores and created enterprise features around it to protect the business model until it got torpedoed by AWS early on. Cockroach Labs is open source, and, in 2015, it was inconceivable to think of a sophisticated database that wasn’t open source. That would have been counterproductive.

Scale 243

Scale Scaling Sales Hiring Cloud 243

Clouded Judgement

MARCH 22, 2024

In it's truest form, ARR is used by pure SaaS business models to describe the aggregate annual value of the entire customer set. Many laude the SaaS business model because ARR is inherently predictable - you know what you’re revenue will be over the coming 12 months, and sometimes even further out than that.

AI 190

AI Cloud Revenue Technical Advisors 190

CloudGeometry

MARCH 22, 2022

If the architecture specifies tracking of user-level activity, it’s not difficult to slice-and-dice the log data to select for a user parameter (such as with a JWT token ), or using tags to match user/tenant activity to the per unit billing that AWS itemizes in your monthly cloud bill.

DevOps as a Service 130

DevOps as a Service Software Delivery Well Architected Framework AWS 130

OpenView Labs

FEBRUARY 9, 2021

This is why we’re seeing more and more SaaS companies—Datadog, Twilio, AWS, Snowflake, and Stripe, to name a few—find success with product led growth paired with usage-based pricing. Though it was pioneered in the infrastructure layer (think: AWS and Azure), it’s becoming increasingly popular for API-based products and application software.

Scale 98

Scale Pricing Scaling AWS 98

Clouded Judgement

MAY 31, 2024

And the promise of the software business model is as companies mature and go out of growth mode the profits will show up. .” As growth starts to slow, it gets harder and harder to justify using revenue multiples as a primary valuation metric. Coming in to Q1 there was broader optimism. Q4’s were generally good!

Cloud 184

Cloud Software GCP(Google Cloud Platform) AI 184

CloudGeometry

FEBRUARY 7, 2022

2020 left no doubt: the growth of cloud computing is firmly grounded in the SaaS business model. The AWS Well-Architected Framework is one such approach that helps adopt architectural best practices (whether or not you run on AWS) and adapt continuously.

Well Architected Framework 130

Well Architected Framework SaaS AWS Construction 130

Clouded Judgement

NOVEMBER 10, 2023

Model providers (OpenAI, Anthropic, etc as companies start building out AI). Hyperscalers (AWS, Azure, GCP as companies look for cloud GPUs who aren’t building out their own data centers) Infra (Data layer, orchestration, monitoring, ops, etc) Durable Applications We’ve clearly well underway of the first 3 layers monetizing.

Cloud 190

Cloud Artificial Intelligence GCP(Google Cloud Platform) AI 190

Tom Tunguz

AUGUST 3, 2014

Advertising-driven models, SaaS business models, consumer hardware and marketplaces are all represented in the earnings figures so far. But Amazon’s massive EPS miss has more to do with large scale capital investment in AWS than a lack of a profitable business or customer base.

Startup 100

Startup Trends AWS Marketing 100

Clouded Judgement

JULY 26, 2024

Open source is now on par with state of the art proprietary models. This will have important implications on the business models / profit margins of key model players. I asked ChatGPT how many price changes AWS has made to S3 since it’s inception in 2006, and the answer it gave me was 65. The Llama 3.1

Cloud 144

Cloud Technical Review Artificial Intelligence Software Review 144

Clouded Judgement

MARCH 31, 2023

How Will AI Effect Software Business Models? Like many, I’ve been thinking about how AI and foundation models will effect the world of software. In particular - how AI will effect software business models. There are two main topics I’ve been pondering lately: Margins.

Cloud 130

Cloud Sales Hiring AI Headcount 130

CloudGeometry

MARCH 3, 2022

See more about all 3 M’s in these two companion blog posts Part 1: User Model and Part 3: Measurement. For a thorough assessment of options for a SaaS business model, download the AWS SaaS Journey Framework whitepaper , and/or take a technical deep dive into the SaaS Lens for the AWS Well-Architected Framework.

Well Architected Framework 130

Well Architected Framework VPCs (Virtual Private Cloud) SaaS Cloud 130

Chargify

FEBRUARY 1, 2018

These forward-thinking businesses are using diverse monetization strategies to better serve their customers and differentiate their offers from the competition. Amazon Web Services (AWS) is a poster-child for the Relationship Economy—they truly understand the modern B2B customer. with numerous upsell and cross-sell opportunities.

Subscription 75

Subscription Payment Features AWS Scale 75

Intercom, Inc.

JANUARY 24, 2019

It’s less expensive than it’s ever been in terms of actually getting a product to market, whether it’s leveraging platforms like Salesforce or GCP or AWS or Heroku. Obviously we’ve seen a lot of changes in terms of tech and business models, but what would you say has stayed the same in that space?

Scale 151

Scale Artificial Intelligence Machine Learning Technical Review 151

Frontegg

JUNE 17, 2021

Multi-tenant SaaS architecture is the better option if you want to create a scalable business model that is flexible and versatile. Lower Maintenance Requirements – All ongoing maintenance costs can be baked into your pricing models. Going the Amazon Web Services (AWS) route? Here are some benefits.

ECS (Elastic Container Service) 97

ECS (Elastic Container Service) multi-cloud Kubernetes K8S orchestration (Kubernetes) EKS (Elastic Kubernetes Service) 97

SaaStr

OCTOBER 31, 2019

It was around that time about 12 years ago that Jeff Bezos launched AWS, and some of you may remember that, when he did this, Wall Street analysts were looking at him and saying, “Why would you take what’s already a very unprofitable business and drive it further into the red by investing in this AWS initiative?”

Cloud 113

Cloud Scale AWS Artificial Intelligence 113

SaaStr

APRIL 30, 2022

It wasn’t the case 20 or even 10 years ago, where the business models of the internet were more focused on eCommerce, marketplaces, or even advertising. That’s typically the AWS model, depending on how much space you take, service space, you will pay more. This wasn’t the case. I mean, this is quite new.

SaaS Payments 246

SaaS Payments Metrics Payment Methods Scale 246

User Pilot

SEPTEMBER 1, 2024

Per feature pricing In a per-feature pricing model, customers are charged based on the specific functionalities they choose to access within the software. Amazon AWS is one of the best SaaS pricing examples with this model. Amazon pricing example.

Pricing 104

Pricing Strategy SaaS Scale 104

Stax

APRIL 18, 2024

While they operate under different business models, ISVs and SaaS share similarities in software development, cross-platform accessibility, and industry reach. ISVs and SaaS providers differ in software distribution, licensing models, hosting responsibilities, support options, upgrade and maintenance procedures, and scalability.

Outsourcing Services 88

Outsourcing Services SaaS Payments Payment Services Payment Methods 88

Frontegg

MAY 27, 2021

This philosophy applies to both low and high touch business models, where the vendor has to eliminate all potential usability problems that may arise. Founded : 2011 Known customers: Facebook, IBM, Microsoft, AWS, Unity, Udemy, Shopify Price starts at: $38/month per user. #2 Best For: Product Adoption.

Payment Solutions 98

Payment Solutions SaaS Payments Payments Scale 98

ChurnZero

JUNE 24, 2022

I mean AWS or whatever might be going up too. But it’s very easy to segment to show which are my healthy clients because the delivery model can affect SaaS. But especially if the business model and the pricing model are the same. Q: How should you approach NRR and GRR for on-prem, hybrid, and SaaS.

Benchmarks 98

Benchmarks Retention Software Review Technical Review 98

ProfitWell

MAY 15, 2020

Google Compute Engine (GCE), Digital Ocean, and Amazon Web Services (AWS) are all good examples of IaaS. Platform as a service, PaaS, is also a cloud computing but service providers deliver platforms to clients, allowing them to develop, run, and manage business applications without the need to build and maintain the infrastructure.

SaaS Payments 75

SaaS Payments Payment Services Payment Solutions Payments 75

Neil Patel

SEPTEMBER 3, 2020

Advertising can’t save awful products. KlientBoost has a unique business model that works well with low/entry budgets. Their agency works well with small or local businesses. Create good products and services: If your product or service is terrible, conversions will be low. KlientBoost – Best for Low Budgets.

Outsourcing Services 131

Outsourcing Services Advertising Transportation Customer Lifetime Value 131

Point Nine Land

JANUARY 30, 2019

In my article “SaaS” is not to be understood as an industry, but rather as an innovation wave (product and business model innovation) which impacted the B2B software industry in the 2000s and came after the “on-premise” wave. As a side note, the “bigger picture” is the B2B software industry here. Infrastructure. Integration.

AI Search 70

AI Search AI B2B Software 70

Outseta

JANUARY 20, 2020

In this post I’m going to share the most important lessons about growing a SaaS business that I learned at Buildium—collectively, these things had an awful lot to do with the company being valued so highly. How the hell does that happen? As a result, Buildium took many chances on up and coming talent—myself included.

SaaS Payments 145

SaaS Payments Sales Hiring Payment Methods Payment Services 145

ProfitWell

MAY 12, 2020

AWS — Amazon Web Services is perhaps the most used of the cloud infrastructure options. Openshift can also be installed on your own servers for on-premise operation. The suite includes a number of service offerings that provide storage and computing resources on a metered basis.

Cloud 59

Cloud Azure SaaS Underperforming Technical Team 59

OpenView Labs

DECEMBER 2, 2020

The Blockbuster/Netflix situation is one of the most frequently cited examples: A newcomer arrives on the scene with a better business model than the incumbent, and the incumbent doesn’t mimic the new model for fear of damaging their existing business. This kind of scenario happens all the time.

Marketing 54

Marketing AWS Scale Development 54

Chart Mogul

OCTOBER 18, 2019

This is already at play — services like AWS, Stripe, and others have brought down the cost of starting and running a business to a fraction of what they used to be just a decade ago. Consumerizing even more parts of the activities of a typical business (logistics-as-a-service, etc.) doubling the number of leads).

Scale 71

Scale SaaS Automotive AWS 71

OpenView Labs

DECEMBER 15, 2020

Cloud marketplaces like AWS Marketplace, Azure Marketplace and Google Cloud Platform Marketplace are digital storefronts where companies can list their offerings for software buyers to find, purchase and provision software. . Marketplaces will enable creative and flexible new business models.

Marketplace as a Service 52

Marketplace as a Service Cloud Scale VP of Engineering 52

Blulogix

OCTOBER 11, 2023

Cloud Service Providers: Integrate data from popular cloud providers like AWS , Azure, or Google Cloud to track resource consumption and costs.

Payment Features 52

Payment Features Management Azure AWS 52

ProfitWell

SEPTEMBER 10, 2020

By almost all key metrics, now is a great time to get into the SaaS business model. Running your own server to handle your customer's valuable data requires a huge investment to match the same level of security and reliability that comes baked into services like Amazon AWS and Microsoft Azure cloud. AI Integrations.

SaaS Payments 66

SaaS Payments Trends Merchant Services Payments 66

User Pilot

APRIL 30, 2024

It’s suitable for businesses wanting control over their infrastructure and the ability to scale. Key examples are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform, which provide scalable resources like virtual servers and storage. What are the benefits of the SaaS model?

SaaS Payments 104

SaaS Payments Payment Methods Payment Services Payment Solutions 104

OPEXEngine

JUNE 11, 2020

The terms aren’t universally understood, nor are the implications of each on the financial model of a company, so the following is an effort to provide an overview. At OPEXEngine, we pull apart the different nuances of each business model to make sure we are benchmarking companies correctly.

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

User Pilot

JULY 23, 2020

If that’s not where you are, don’t panic … The ideal rate for retention marketing depends entirely on your business model. What that means for your business. The rate you need to achieve to hit your business goals. According to Mixpanel research from 2017, the cross-sectoral average rate was 20%.

Retention 95

Retention SaaS Payments Strategy Payment Solutions 95

Blulogix

NOVEMBER 8, 2023

Here are some notable examples: Cloud Computing Major cloud providers like AWS, Azure, and Google Cloud offer pay-as-you-go pricing, enabling businesses to access computing resources based on their actual usage. This approach has transformed the way companies manage their IT infrastructure.

Technology 52

Technology Pricing Payment Features Subscription 52