Software pricing and packaging is an art form regardless of whether it’s delivered as a service or as physical on premise software. There is also a lot of science involved. This paper explores the most critical aspects of introducing and managing SaaS applications and presents independent software vendors (ISVs) with ideas on how to build, execute and manage effective software pricing and packaging strategies for cloud services and recurring revenue streams.
There are many different models to SaaS. But one of the most key objectives is starting a customer base then optimizing for revenue. You will need customers, revenue, product direction, and a stake to a claim against potential competitors.
It’s very important to figure out how you are going to enter the market from a software pricing, packaging, and overall strategy perspective. Whether that means flexible subscriptions, usage-based models, or even prepaid pools, is up to you. You should also be thinking about even more flexible options, such as overages, rollovers, or peak usage choices.
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