Category Archives: Billing

Where are the opportunities for new SaaS ventures?

Almost four years ago, I wrote a post that argues that SaaS will eventually win over on-premise software. At the time, Larry Ellison, Oracle CEO, still argued that SaaS was a fad.

Now, in 2015, it’s clear that SaaS has won the “delivery”. What’s more, SaaS has also created new markets, penetrating customer segments for which an on-premise software solution was cost prohibitive in the past. Dozens if not hundreds of successful SaaS vendors are hitting the market and seem to be covering every single business need in every vertical.

Are there still opportunities for new SaaS ventures?

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Business Components of a SaaS Solution

Today, Google announced that its Google App Engine platform-as-a-service solution would be leaving Preview stage later this year.

The cloud computing concept has gained a lot of momentum in the last few years. Classification of the  solution space has somewhat focused on infrastructure-as-a-service (IaaS), which is typically associated with Amazon’s platform, and platform-as-a-service (PaaS), often associated with Salesforce Force.com and the aforementioned Google App Engine. In a previous post, I pointed to a short article that summarizes these terms.

A lot of debate has taken place around the economics of cloud computing, and around the advantages and disadvantages of the PaaS model. However, little discussion has taken place around additional (higher level; or: business) components that are needed to successfully run a SaaS business, in addition to the core infrastructure and the basic platform.

The diagram that follows is an outline of components that are part of the architecture of (almost) every SaaS business.

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