On my last trip to San Francisco I sat down with Matt Childs of DreamSimplicity to talk about the state of SaaS. We shot some video as we talked about how Google & Apple have changed the distribution landscape for SaaS & Mobile making App Stores & Marketplaces a new reality for SaaS vendors and […]
SaaS Pricing: Commodity Metrics and the $240 GB
March 31, 2010 Article by Lincoln Murphy
SaaS pricing strategies that use low-value commodity metrics – like storage – to differentiate tiers force customers to make price comparisons that shouldn’t be made. Updated for 2014 This topic came up with a client who wanted to pass on the storage costs associated with the use of the system to their end-customer. We quickly […]
SaaS Pricing: Versioning for Market Segments
March 5, 2010 Article by Lincoln Murphy
Rags Srinivasan posted a great article titled “The Science of Optimal Versioning in SaaS” to his blog that talks about SaaS pricing. In the article, Rags talks about taking apply SaaS pricing to through different bundles of features at different prices for various market segments. The whole article is great, so I encourage you to […]
SaaS Network Effect: Companies Should Exploit Aggregate Data
September 21, 2009 Article by Lincoln Murphy
SaaS providers must understand the difference between consumers of their apps, producers of SaaS network effect data and how to monetize both. ADP: A Case Study in Network Effects A quick update for 2013: ADP now processes payroll payments for 1 in 6 American workers. Because of this massive “network effect” they’ve created, ADP has […]
SaaS Success Requires Dropping the Legacy Baggage
August 26, 2009 Article by Lincoln Murphy
Don’t try to force an on-premises, packaged software product to the cloud. Legacy software is a square peg and SaaS is a round hole. No matter how hard you try, forcing legacy, on-premises software to fit into the “SaaS model” is at worst not going to work and at best, requires cutting corners. It is […]
SaaS Companies Should Learn from Netflix
May 19, 2009 Article by Lincoln Murphy
Web Apps with Proactive Customer Service will win more – and keep more – customers than their competitors and Netflix should be the model. I often extol the virtues of the SaaS Business Architecture for vendors beyond just the typical “cost savings” and “operational efficiency” that most pundits and analysts like to talk about. I […]
