SaaS Subscription Management
SaaS (software as a service) subscriptions provide consumers with an affordable alternative to traditional out-of-the-box software. SaaS subscriptions may also encourage consumers to try new SaaS offerings, since they know the cost upfront, for the services they plan to use. A SaaS subscription can also significantly reduce the software costs incurred by organizations, as there are usually no exorbitant licensing fees to be paid under the SaaS model of software delivery.
SaaS is frequently billed on subscription basis for its simplicity and predictability, making it a very popular billing method with consumers who wish to avoid going over their intended software budget. Along the same lines, SaaS subscriptions also provide ISV’s (independent software vendors) with a more predictable revenue stream than what can be obtained with pay-as-you-go SaaS billing methods. SaaS delivery incorporates SOA (service oriented architecture) which provides the necessary architecture for an ever changing configuration of SaaS services to be combined into various subscription levels.
Subscription Management Systems
SaaS subscription management systems provide ISV’s with the necessary tools to associate software service levels with pricing plans and collect revenue. The best SaaS subscription management systems seamlessly integrate with SaaS provisioning, metering and payment systems. The benefit of tight systems integration is the ability to deliver subscription pricing to tenants based on a customized basket of software services. This linkage also provides ISV’s with the ability to analyze the demand, usage and revenue streams associated with their subscription based SaaS offerings. Other helpful features available in many SaaS subscription management systems include: automation of trial-to-paid conversion, the ability to define service bundles based on features and the ability to define license models and usage policies for SaaS offerings.
SaaS subscription management systems delivered via the cloud use a variety of SaaS pricing models, including: paying a flat monthly fee plus a per transaction charge, paying a flat monthly fee plus a per transaction percentage, paying a flat monthly fee based on the number of customers managed or paying a transaction fee plus a percentage of each transaction. As with any service, the most cost effective pricing plan for any ISV depends on the frequency and volume of transactions (subscriptions) that will be initiated or updated in a given time period. Apprenda’s ISV solution provides a fully integrated SaaS subscription management system that offers annual subscription pricing, giving high volume ISV’s the maximum amount of control over the operational costs associated with SaaS subscription management.