Software as a Service Pricing Strategies White Paper Released
The explosion of cloud computing and low friction delivery models, is also creating the opportunity to completely reinvent the software business models that accompany these products. As a result, tremendous innovation is occurring in terms of product pricing and packaging. Although the “flinch test” (keep raising the price and constraining the terms until the customer flinches) may have been an effective pricing art in the era of enterprise software, much more thoughtful strategies are needed for the modern models.
To help cloud companies better evaluate the strategy that is best for them, we just published a SaaS Pricing Strategies white paper that analyses four of the modest common SaaS pricing models: Freemium, Consumption, Tiered, and Perpetual License. Unlike many of our BVP Cloud whitepapers, we tried something different here and used more of an academic case format with this one. Based on the lessons from these case studies, a framework for making pricing model decisions is derived. Lastly, interviews with real world companies are used to tie the theoretical underpinnings of this paper to real world practice. We hope you find it useful, and welcome candid feedback, as always!
Download Whitepaper here