Pragmatic Marketing Magazine has an in-depth look at the economics of purchasing a SaaS (software-as-a-service) solution versus a software solution.
While the article is (overly) technical and lengthy, they arrive at a definitive conclusion.
The SaaS model ultimately provides the same type of products as a software licensing model—but with a better economic model, one that is lower in cost to the customer and structurally inclined to keep getting better for the customer with every new release.
Personally, I like the idea of purchasing from a company that is financially motivated to keep me happy, not one that is pressured to find another customer as soon as I’ve written my check.
Do you agree or disagree? Share your thoughts and experiences by commenting below.
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