Enterprise applications Toolkit

Story: SaaS industry 'will collapse' in two years

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Lack of substance abuse?

I understand Debes' argument and to some degree I accept his conclusion, but I think he misunderstands what SaaS is.

SaaS is NOT a revenue model, SaaS is a delivery method.

I run a SaaS based business in the UK and whilst we clearly offer a classic SaaS revenue model, we also offer a more traditional software revenue model BUT with a SaaS delivery framework.

So long as the margins work and the billing platform can cope them why can't a blend of revenue options exist?

Our large clients demand a more traditional model, but like the SaaS delivery method. They don't have to concern themselves with depreciation only with maintenance. Whereas our smaller customers like the SaaS model because it is low cost (relatively) and easy to adopt.

I also believe that if you are wary of the SaaS model because it doesn't tie in your customers, then your concern should be in the quality of your product and your overselling of features/functions. I would argue that SaaS companies are much more tuned to the competitor space and the needs of customers. But hey, what do I know??

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