By Denis Pombriant on March 5, 2014
Subscription companies face many of the same challenges that more conventional companies face but the nature of these businesses puts an entirely different spin on the challenges. All companies have to acquire new customers, make products and price them attractively without leaving money on the table. Also, once a product is purchased, a company needs […]
By Jason M. Lemkin on June 10, 2013
There are two things I see SaaS entrepreneurs who are post-Traction and post-Scale say again and again: We’re So Sticky. Once we’re in, it’s so hard to rip us out. Our Churn is Basically Zero in the Enterprise. We’re doing great because No One Leaves. If you’re coming from a Freemium background, or B2C, that […]
By Bob Warfield on October 11, 2012
I guess those Old School Enterprise guys running Workday know a thing or two about SaaS too, eh?
So keep an eye on your SaaS investments. They have time to fix it if the growth rate slows–they’ll see it coming from the sales funnel. And if they don’t manage to get it fixed before it manifests in the revenue, something very bad is probably happening there.
By Vinnie Mirchandani on July 25, 2012
I tend to not pay too much attention to quarterly earnings – whether they are good or bad. But my friend Dennis Howlett says “SAP’s Q2 results are stunning by any standards” and I decided to apply my own “is this an inflexion point?” st…
By Vinnie Mirchandani on April 21, 2011
Fred Reichheld coined the term “good profits” in his book Ultimate Question. His point was in pursuit of financial goals we often focus on certain fees (and related profits) which actually turn off customers and lead to dissatisfaction and worse. Lord knows we have plenty of examples of “bad profits” at airlines, banks and telcos. […]
By Bob Warfield on January 10, 2011
Every now and again I see the old chestnut trotted out that Software has no marginal cost. It’s used for all sorts of reasons. The gut feeling that it is true is probably at the heart of most people’s justification for why piracy is okay, for example, not that I’m saying most people think it’s […]
Posted in Business, Featured Posts | Tagged App Store, Cloud, Cloud Computing, debate, marginal cost, rebuttal, Revenue, SaaS, service, software as a service, software cost, software marginal cost, venture | 1 Response
By Jason Busch on November 1, 2010
Last week, Ariba announced its latest quarterly results. Even though the purpose of this mini-series looking at their performance and what it means for the market is to dig into the numbers and qualitative observations, I find it …
By Josh Greenbaum on July 13, 2010
It’s cloud’s illusions I recall, I really don’t know clouds at all….. One of the primary devils in the details with cloud computing will always be found in the chase for margins, and this is becoming abundantly clear for Microsoft’s market-leading partner ecosystem, gathered this week in Washington, DC. for their Worldwide Partner Conference.
Posted in Business, Featured Posts, Technology / Software | Tagged Business ByDesign, ByD, Cloud Computing, cloud economics, microsoft, Microsoft Azure, Microsoft Dynamics, profit, Revenue, saas economics, sap, Steve Ballmer, xrm | 1 Response
By Zoli Erdos on June 21, 2010
Here’s proof that Governments’ creativity in finding new revenue sources is unlimited, reports The Merc: The California Legislature is considering a bill that would allow the state to begin researching the use of electronic license plates for vehicles. The move is intended as a moneymaker for a state facing a $19 billion deficit. The device […]
Posted in Trends & Concepts | Tagged Accenture, ads, advertising, California, California State Legislature, cars, iPad, Legislation, police, Revenue, RFID, smart license plates, techology, transportation, Vehicle registration plate, velcro | 1 Response
By Jason Busch on June 2, 2010
I recently had the chance to sit down with Forrester’s Duncan Jones, an industry colleague who happens to be an old pro on software negotiation. Based in the UK, Duncan is currently a Principal Analyst at Forrester Research. Yet his recommendations when it comes to saving money with the SAPs and Oracles of the business […]