It all started with Software-as-a-Service (SaaS). Technology companies realized that instead of charging clients huge amounts of capital for expensive hardware, and large upfront fees for costly software that needed to be loaded on dedicated machines, they could license their solutions on a centrally hosted platform via a subscription basis. SaaS was a game changer, not only for large enterprises, but also for anyone interested in starting a business. The cost of IT infrastructure was a barrier for many entrepreneurs. An additional hurdle was the need for a full IT staff to manage all of the company's technology. Besides the benefits that SaaS affords to customers, the upside to the SaaS provider is a constant stream of recurring revenue. Not only does revenue come in month-after-month, but the enterprise valuation for subscription revenue dwarfs the valuation for companies whose revenue is made up of one-time purchases. It also increases their TAM by creating affordable solutions for companies without the financial means to deploy huge sums of upfront capital. SaaS has made it possible for anyone with an idea and a computer to get their business off the ground.
Meet the Winner of NAR's iOi Pitch Battle
Meet the Winner of NAR's iOi Pitch Battle
Meet the Winner of NAR's iOi Pitch Battle
It all started with Software-as-a-Service (SaaS). Technology companies realized that instead of charging clients huge amounts of capital for expensive hardware, and large upfront fees for costly software that needed to be loaded on dedicated machines, they could license their solutions on a centrally hosted platform via a subscription basis. SaaS was a game changer, not only for large enterprises, but also for anyone interested in starting a business. The cost of IT infrastructure was a barrier for many entrepreneurs. An additional hurdle was the need for a full IT staff to manage all of the company's technology. Besides the benefits that SaaS affords to customers, the upside to the SaaS provider is a constant stream of recurring revenue. Not only does revenue come in month-after-month, but the enterprise valuation for subscription revenue dwarfs the valuation for companies whose revenue is made up of one-time purchases. It also increases their TAM by creating affordable solutions for companies without the financial means to deploy huge sums of upfront capital. SaaS has made it possible for anyone with an idea and a computer to get their business off the ground.