Thoughts in action

Profitability SaaS Versus On Premise Solutions

SaaS is being increasingly adopted and is even considered a savior model in this economy due to the zero upfront CAPEX for buyers. Still the question remains if SaaS is a profitable model for solution providers? Regardless of the longer sales cycles, is the on-premise solution providing faster break-even?

This webinar moderated by Aspire Systems, where Amy Wohl of Wohl Associates and Alex Ginger, Director of Active Operations Management International, a SaaS provider discussed the two business models, in light of the current economic situation.

Some of key topics discussed were:

  • Cost factors – developmental, operational and marketing costs
  • Revenue factors – sales cycle, pricing models, etc.
  • Benefits/drawbacks of both the business models
  • Will a hybrid pricing/delivery model provide better benefits?

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