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In many industries the pricing models are as old as the industries itself, as well as rules of the overall game were lay a long time travel and are accepted by everyone. This is the wrong view of SaaS. Be young software delivery model, one of the keys factors of the good pricing strategy will not be that clear.
It appears to be, simply taking a look by the pricing models of many SaaS offerings, that traditional licensing model of the on-premise [url=http://www.davidhabchy.com]barbour outlet[/url] software [url=http://cgi.ebay.ca/ws/eBayISAPI.dll?ViewItem&item=321008881654&ssPageName=STRK:MESE:IT]piumini moncler outlet Releva[/url] will [url=http://www.ttcarpets.co.uk]mulberry sale[/url] not be the top idea for OnDemand software.

Also, the traditional services (like consulting) model "I demand compensation for the period you will be using my resources (professionals) so their value (junior, senior, etc...)" doesn't seem to be the best way to approach the SaaS pricing problem (probably fits better when referring to cloud computing). We aren t referring to traditional services, we're talking about pricing a subscription business.
In SaaS, the change from offering "products" to "services", [url=http://www.sandvikfw.net/shopuk.php]hollister outlet sale[/url] from "acquire" to "subscribe" implies the need of defining the easiest way for charging of the solution offered.
So, any SaaS provider faces the condition of fixing the correct price to its solution / services. There are various alternatives and factors that should be considered when dealing with this.

A lot of the proposals available to choose from use some (or all) of this ideas:
- Pay periodically: For that reason charging tha audience regularly (usually monthly).
- Pay money for each user: Very frequently, from Salesforce to that particular new SaaS start-up that two college students just started.
- Pay money for the resources: This usually means computing resources: CPU/hour, GB, Bandwith, etc... it really is used commonly in IaaS or PaaS.
- Pay money for the features: And so the customers pays simply for the features throughout our solution they really need. Maybe new functionality or it could be simple using 'more' of many tool (for example more applications inside of a PaaS offering).
Each of this 'ideas' have its own advantages and disadvantages. By way of example, 'paying for one user' uses the problem of generating fear within the customer about adopting the solutions widely, or 'pay for any resources' possesses the problem of the customers not understanding what gachisites will bear the expense on the next month...
Per word, usually SaaS pricing models are usually more flexible than among traditional license-based on-premise software, and mean less risk including a wiser spending. Could, though, for you to an issue of complexity that ought to be studied good care of.
First, let's look into it about something one ought to take into consideration, the goals that any pricing [url=http://www.marrakech-hotel.fr]hollister france[/url] strategy for SaaS should pursue in order to sustain a profitable business model.
- Allow it to become interesting for only a new customer to get started on utilizing product. Working with a free version, an effort version, or just a 'pay-as-you-go' strategy starting low, usually solves this.
- Do the costs for that customer predictable. Everyone likes to know what to expect when speaking about paying... some SaaS offering have this problem (specially those people who have cost based pricing models). One should so be the customer know, and choose the things they want to spend. Though we must always bear in mind the 2nd goal.
- Seek to raise the customer share after the customer is trying the tool. This really is achieved in a lot of ways different methods, many relevant to the 'pay-as-you-go' model (features, users, resources, etc...). The client should think that spending more really means extracting more value coming from the tool.
- Don't make the pricing model too complex. That is a problem very often offered in SaaS offerings, and that helps make the adoption of the tool because of the market slower and harder. Let's remember many companies are usually not use to SaaS yet.
- Make perfectly sure that the member does not abuse into using the solution. This particular could happen quite easily in solutions where a lot of data are involved, like those people who use video, business intelligence tools, etc... the provider is to be protected against this.

So, could this goals and the main ideas explained within the first post be applied when defining a SaaS pricing strategy?
Let's take a look at a truly great world example: coghead

Coghead is really a good, and quite veteran PaaS offering that distinguishes itself by giving the chance of developing a remedy on your platform mostly by visual "drag and [url=http://www.nobiso.jp/cgi-bin/info/aska.cgi?tid=38436]abercrombie milano An Physica[/url] drop" operations. They're well funded and will consider as a thoughtful strong competitor to [url=http://www.rtnagel.com/louboutinpascher.php]louboutin[/url] companies like Intuit with quickbase or Salesforce's force platform.

So, let's analyze their pricing model without preaching about money, we are most certainly inquisitive about your car:
- They demand basicaly on three different concepts: users, records and file storage.
- They feature cost-free account with: 1 user, 2000 rows and 100MB of space.
- From there you have got two options to scale: the workgroup bundles (with discounts) or maybe 'pay-as-you-go' more flexible looking on [url=http://www.diecastlinks.co.uk]hollister outlet[/url] your objective.
- There are so many four different workgroup bundles: plus, pro, premium, business, everything with a fixed price for only a certain volume of users/records/space. Without a doubt a heap of money is cheaper than undergoing the same amount of usage via 'pay-as-you-go'.
- The 'pay-as-you-go' model basically charges you for each user/10000 rows/1 GB utilized.
You will relax and take a deeper look at Coghead's pricing model here.
Let's talk now about how precisely exactly does this pricing model pertains to the "model ideas" and goals we explained:
- They, obviously use a periodic (monthly) payment. Something that makes perfect sense [url=http://cgi.ebay.com.au/ws/eBayISAPI.dll?ViewItem&item=110854464629]doudoune moncler pas cher Pre[/url] to have a PaaS offering.
- They charge both for the users and for the resources used. This is very often employed in PaaS offering, which are very easily overused. Charging for quantity of rows or space is one method for Coghead to verify nobody abuses the autoresponder.
- They've some feature pricing also: Limited users and acces point for applications that like to be public.
- They have both 'pay-as-you-go' as well as a 'package' alternatives.
So, they appear to make use of almost every ideas we go over, this, clearly brings an issue of complexity but gives the users loads of flexibility.
Now the last question, does this pricing models attain the goals we wrote [url=http://www.rtnagel.com/louboutinpascher.php]louboutin pas cher[/url] about in this blog?
- It is certainly atractive to get a new customer/developer to get started knowing/using their system via the free basic account.
- About producing the costs for the customer predictable: They offer this through their bundled-workgroup choices. You know what you [url=http://www.anepf.fr]doudoune moncler[/url] pay for. This isn't true into 'pay-as-you-go' option, which can be also dearer, so their pricing model would bring customers to the 'workgroup'choices.
- Raise the customer share: This true of the 'pay-as-you-go' , but not so true for the 'workgroup' option, where de customer could hesitate before selecting future [url=http://www.skoda-witzke.de/woolrichoutlet.php]woolrich outlet[/url] and expensive bundle.
- Don't make the pricing too complex: We certainly think Coghead fails on this one, their pricing model is very complex of the average user. We didn't even talked here about their spouse offerings or the concepts behing other type of users. We asume that, to have a PaaS offering whose customers are both business and technically skilled, complexity is not such a big problem.
- Avoid customer abuse: This really is quite covered of course there isn t any easy way that a customer could make an extremely extensive using of the platform [url=http://www.corsodiesperanto.it/hoganit.html]hogan outlet[/url] without spending money on it. Maybe they [url=http://www.anepf.fr]doudoune moncler pas cher[/url] could employ a factor with bandwidth, something they don't demand compensation (they actually have limits at least for public/web users connected with an app).

We consider that the standard behaviour of the customer could be to:
[url=http://www.lotogame.fr/louboutin-pas-cher/]louboutin[/url] 1. Try the free account.
2. Go for the very first bundle.
3. If compaired with second, third, finally the 'business' option.
4. Generally if the customer has further needs they would not have any option but choosing quite unpredictable 'pay-as-you-go' model.
So, in the long run, increasing the complexness on their pricing model by using the vast majority of usuall ideas in SaaS pricing, (they manufactured some changes recently) Coghead has always been able to cover almost all of the goals.We believe they may employ an strong pricing model (complexity will never be a very big trouble for this sort of PaaS tool) that supporting their excelent flex-based tool, should help them in becoming an enormous player in the PaaS area.TodoOndemand is really a blog about SaaS, Cloud computing and OnDemand software.