Monday, March 23, 2009

SaaS Metrics

Any software company considering doing business using a SaaS (Software as a Service) model not only needs to understand how to manage a 24x7 operational environment but also needs to understand the metrics of running a SaaS business. Haut Tec wrote two great articles recently on the whole subject of SaaS Metrics.

The first, SaaSoNomics 101 gives you the basics.

The metrics of any business model are arguably “entertaining reading” for only a very limited number of people to be sure. But it is a critical subject for companies with new SaaS products or ISVs moving to SaaS to understand and be ready to measure from day one of operations.

The second, SaaSoNomics 102A discusses the sales side of the equation.

...because of the typical subscription period in SaaS - constant monitoring and well-considered goals are critical to success.

Although there are a lot of numbers discussed in these two articles, I would be in favour of picking some critical ones, it is important that Executives in SaaS businesses understand the overall picture, therefore making it easier to pick the right metrics for their businesses.

ZeroTouch IT Ltd