Whether yours is a new SaaS business or an established business adding or moving to SaaS, revenue forecasting can be especially challenging. In more traditional pricing models, large amounts of money are paid up front and most of the customer lifetime value is realized in short order. In SaaS, however, it’s very different.
The virtualization trend is growing and changing the software industry. Research pundits, like Gartner, predict virtualization will quickly affect how customers and vendors think about software pricing and licensing. Is your current pricing model keeping up with industry trends?