While many statistical trends apply to all subscription businesses, it’s important to also understand the unique challenges different subscription industries face. For example, how best to structure one’s product offerings, what discounts if any should be given to customers willing to commit long-term, and what role does pricing play?Continue Reading
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Industry analysts have predicted that by 2020, all new software businesses and 80% of historical vendors will offer a subscription option. “What began as a trickle a few years ago has become a stampede of vendors wanting to make a move to a subscription business model,” remarks their analyst.Continue Reading
These days, software as a service, or SaaS, is the most common way of selling software to both businesses and consumers. It’s easier than shipping physical packages, more cost-effective, and provides a variety of other benefits. Salesforce—one of the most highly valued cloud computing companies in the world, with a market cap of $56.5 billion at today’s writing—staked the future of their entire business on the SaaS model. Back in 1999, the company accurately predicted that their customers didn’t want or need on-premises software. Other software companies followed suit and made the transition to the SaaS model. The subscription model worked, gained traction, and took off.Continue Reading
In another sign of the growth of the subscription model, Autodesk, one of the latest big-name companies to transition from selling single software licenses to selling via a cloud-based subscription model.
On January 31 of this year, Autodesk stopped selling perpetual (non-subscription) licenses of most of its individual products. Although already, before the shift, Autodesk was seeing that the majority of their new customers were themselves choosing the desktop subscription rather than the perpetual license.Continue Reading
The forecast for SaaS companies in 2016 is a sunny one. Why? Because the cloud has become the platform of choice and the de facto delivery model for more and more businesses, large and small. Although the cloud as we know it today has been around since the 2000’s, 2015 has proven to be a watershed year due to the widespread adoption of cloud-based business solutions and infrastructure for the enterprise, as outlined in this recent article from ZDNet.Continue Reading