30 August, 2013
B2B Software Startups: The SaaS Platform Dilemma
SaaS has considerably reduced B2B software development costs. Think about ten years ago and the products and services you had to buy when starting a B2B software company, and that you can now rent. These include productivity suites, servers, telecom networks, software development tools and project management and CRM software. Of course the total lifecycle cost of these services may be higher than their perpetual license equivalent (SaaS wouldn’t exist as an industry otherwise), but given the cash flow profile of a startup, renting vs. buying makes a big difference.