SaaS business model companies: characteristics and performance assessment metrics
DOI:
https://doi.org/10.33119/SIP.2018.170.3Keywords:
SaaS, software-as-a-service, IT, performance assessment, metricsAbstract
The paper describes an innovative business model called software-as-a-service (SaaS), in which the product (software) is licensed on a subscription and the source code of the software is stored and used in the provider’s data centre. The first objective of the paper is to outline the major reasons why IT companies opt for the SaaS business model. Its second objective is to present specific metrics for the SaaS business model, which are valuable supplements of the traditional financial statements analysis in companies based on this business model.
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References
Wydawnictwa zwarte
1. Andreessen M. [2011], Why Software Is Eating the World, „Wall Street Journal”, 20.08.
2. ASPs Are for Real… But What’s Right for You [1999], IDC White Paper.
3. Carraro G., Chong F. [2006], Software as a Service (SaaS): An Enterprise Perspective, Microsoft, październik.
4. Curie W., Desai B., Khan N. [2004], Customer Evaluation of Application Services Provisioning in Five Vertical Sectors, „Journal of Information Technology”, 19.
5. Dubey A., Wagle D. [2007], Delivering Software as a Service, „McKinsey Quarterly”, June.
6. Herbert L., Hamerman P. D. et al. [2017], SaaS Adoption 2017: If You Aren’t Using SaaS Broadly, Your Business Risks Falling Behind, Gartner, czerwiec.
7. IDC Worldwide Quarterly Cloud IT Infrastructure Tracker Q3 2016 [2017], IDC, styczeń.
8. Software as a Service: Strategic Backgrounder [2001], SIIA, luty.
9. Walsh K. R. [2003], Analyzing the Application ASP Concept: Technologies, Economies, and Strategies. Communications of the ACM, „Magazine Communications of the ACM – Program
Compaction”, vol. 46, no. 8.
10. Wood F., Horner D. [2010], Business Accounting Basics, wyd. 1.
11. Worldwide Quarterly Cloud IT Infrastructure Tracker Q3 2016 [2017], IDC.
12. Ziegler J. [1967], Time-sharing data processing systems, Prentice-Hall.
Materiały internetowe
1. 5 Ways to Build a $ 100 Million Business, Point Nine Capital, październik 2016, https://medium.com/point-nine-news/5‑ways-to-build-a-100‑million-business-c5066181bf50, dostęp 28.07.2017.
2. About, New Relic, https://newrelic.com/about, dostęp 28.07.2017.
3. Anderson E., Smith D. M. [2015], Hype Cycle for Cloud Computing, www.gartner.com, dostęp 10.02.2018.
4. Brinda M., Heric M. [2017], The Changing Faces of the Cloud, Bain & Co., https://www.bain.com/insights/the-changing-faces-of-the-cloud/, dostęp 10.02.2018.
5. Chappell D. [2012], How SaaS Changes an ISV’s Business, Chappell & Associates, http://www.davidchappell.com/writing/white_papers/How_SaaS_Changes_an_ISVs_Business--Chappell_
v1.0.pdf, dostęp 10.02.2018.
6. Clayton N. [2017], New Relic’s SaaS Model Is Not Fully Appreciated By The Market, Seeking Alfa, maj, https://seekingalpha.com/article/4073728‑new-relics-saas-model-fully-appreciated-
market, dostęp 28.07.2017.
7. Gartner Hype Cycle, Gartner, http://www.gartner.com/technology/research/methodologies/hype-cycle.jsp, dostęp 28.07.2017.
8. http://www.forentrepreneurs.com/saas-metrics-2‑definitions-2/, dostęp 10.02.2018.
9. https://a16z.com/2014/05/13/understanding-saas-valuation-primer/, dostęp 10.02.2018.
10. https://engineering.shopify.com/blogs/engineering/defining-churn-rate-no-really-this-actually-requires-an-entire-blog-post, dostęp 10.02.2018.
11. https://www.techrepublic.com/article/microsoft-sets-strategy-for-software-rentals/, dostęp 10.02.2018.
12. Kellogg D., CAC Payback Period: The Most Misunderstood SaaS Metric, https://kellblog.com/2016/03/17/cac-payback-period-the-most-misunderstood-saas-metric/, dostęp 28.07.2017.
13. Kupor S., Kasireddy P. [2014], Understanding SaaS: Why the Pundits Have It Wrong, Andreessen Horowitz, maj, https://a16z.com/2014/05/13/understanding-saas-valuation-primer/,
dostęp 28.07.2017.
14. McBride J. T. [2015], The Complete SaaS Guide to Calculating and Optimizing ARPU, ProfitWell, sierpień, http://blog.profitwell.com/the-complete-saas-guide-to-calculating-and-
optimizing-arpu, dostęp 28.07.2017.
15. Murphy L. [a], SaaS Churn Rate: Go Negative with Expansion Revenue, http://sixteenventures.com/negative-saas-churn-rate, dostęp 28.07.2017.
16. Murphy L. [b], SaaS Churn Rate: What’s Acceptable?, http://sixteenventures.com/saas-churn-rate, dostęp 28.07.2017.
17. Skok D., SaaS Metrics 2.0 – Detailed Definitions, http://www.forentrepreneurs.com/saas-metrics-2‑definitions-2/, dostęp 28.07.2017.
18. Software & Programming Industry, CSI Market, https://csimarket.com/Industry/Industry_Data.php?ind=1011, dostęp 28.07.2017.
19. Softword: Provenance for the Word ‘Software’ [2006], http://www.niquette.com/books/softword/part0.htm, dostęp 28.07.2017.
20. Tunguz T. [a], Benchmarking New Relic’s S-1 – How 7 Key SaaS Metrics Stack Up, http://tomtunguz.com/new-relic-s-1/, dostęp 28.07.2017.
21. Tunguz T. [b], Not All Revenue Dollars Are Created Equal, http://tomtunguz.com/not-all-revenue-dollars-are-created-equal/, dostęp 28.07.2017.
22. Tunguz T. [c], The Importance of Payback Period for SaaS Startups, http://tomtunguz.com/payback_period_cash/, dostęp 28.07.2017.
23. Tunguz T. [d], Why Negative Churn Is Such a Powerful Growth Mechanism, http://tomtunguz.com/negative-churn/, dostęp 28.07.2017.
24. Understanding MRR, SaaSoptics, http://www.saasoptics.com/saaspedia/calculating-mrr, dostęp 28.07.2017.
1. Andreessen M. [2011], Why Software Is Eating the World, „Wall Street Journal”, 20.08.
2. ASPs Are for Real… But What’s Right for You [1999], IDC White Paper.
3. Carraro G., Chong F. [2006], Software as a Service (SaaS): An Enterprise Perspective, Microsoft, październik.
4. Curie W., Desai B., Khan N. [2004], Customer Evaluation of Application Services Provisioning in Five Vertical Sectors, „Journal of Information Technology”, 19.
5. Dubey A., Wagle D. [2007], Delivering Software as a Service, „McKinsey Quarterly”, June.
6. Herbert L., Hamerman P. D. et al. [2017], SaaS Adoption 2017: If You Aren’t Using SaaS Broadly, Your Business Risks Falling Behind, Gartner, czerwiec.
7. IDC Worldwide Quarterly Cloud IT Infrastructure Tracker Q3 2016 [2017], IDC, styczeń.
8. Software as a Service: Strategic Backgrounder [2001], SIIA, luty.
9. Walsh K. R. [2003], Analyzing the Application ASP Concept: Technologies, Economies, and Strategies. Communications of the ACM, „Magazine Communications of the ACM – Program
Compaction”, vol. 46, no. 8.
10. Wood F., Horner D. [2010], Business Accounting Basics, wyd. 1.
11. Worldwide Quarterly Cloud IT Infrastructure Tracker Q3 2016 [2017], IDC.
12. Ziegler J. [1967], Time-sharing data processing systems, Prentice-Hall.
Materiały internetowe
1. 5 Ways to Build a $ 100 Million Business, Point Nine Capital, październik 2016, https://medium.com/point-nine-news/5‑ways-to-build-a-100‑million-business-c5066181bf50, dostęp 28.07.2017.
2. About, New Relic, https://newrelic.com/about, dostęp 28.07.2017.
3. Anderson E., Smith D. M. [2015], Hype Cycle for Cloud Computing, www.gartner.com, dostęp 10.02.2018.
4. Brinda M., Heric M. [2017], The Changing Faces of the Cloud, Bain & Co., https://www.bain.com/insights/the-changing-faces-of-the-cloud/, dostęp 10.02.2018.
5. Chappell D. [2012], How SaaS Changes an ISV’s Business, Chappell & Associates, http://www.davidchappell.com/writing/white_papers/How_SaaS_Changes_an_ISVs_Business--Chappell_
v1.0.pdf, dostęp 10.02.2018.
6. Clayton N. [2017], New Relic’s SaaS Model Is Not Fully Appreciated By The Market, Seeking Alfa, maj, https://seekingalpha.com/article/4073728‑new-relics-saas-model-fully-appreciated-
market, dostęp 28.07.2017.
7. Gartner Hype Cycle, Gartner, http://www.gartner.com/technology/research/methodologies/hype-cycle.jsp, dostęp 28.07.2017.
8. http://www.forentrepreneurs.com/saas-metrics-2‑definitions-2/, dostęp 10.02.2018.
9. https://a16z.com/2014/05/13/understanding-saas-valuation-primer/, dostęp 10.02.2018.
10. https://engineering.shopify.com/blogs/engineering/defining-churn-rate-no-really-this-actually-requires-an-entire-blog-post, dostęp 10.02.2018.
11. https://www.techrepublic.com/article/microsoft-sets-strategy-for-software-rentals/, dostęp 10.02.2018.
12. Kellogg D., CAC Payback Period: The Most Misunderstood SaaS Metric, https://kellblog.com/2016/03/17/cac-payback-period-the-most-misunderstood-saas-metric/, dostęp 28.07.2017.
13. Kupor S., Kasireddy P. [2014], Understanding SaaS: Why the Pundits Have It Wrong, Andreessen Horowitz, maj, https://a16z.com/2014/05/13/understanding-saas-valuation-primer/,
dostęp 28.07.2017.
14. McBride J. T. [2015], The Complete SaaS Guide to Calculating and Optimizing ARPU, ProfitWell, sierpień, http://blog.profitwell.com/the-complete-saas-guide-to-calculating-and-
optimizing-arpu, dostęp 28.07.2017.
15. Murphy L. [a], SaaS Churn Rate: Go Negative with Expansion Revenue, http://sixteenventures.com/negative-saas-churn-rate, dostęp 28.07.2017.
16. Murphy L. [b], SaaS Churn Rate: What’s Acceptable?, http://sixteenventures.com/saas-churn-rate, dostęp 28.07.2017.
17. Skok D., SaaS Metrics 2.0 – Detailed Definitions, http://www.forentrepreneurs.com/saas-metrics-2‑definitions-2/, dostęp 28.07.2017.
18. Software & Programming Industry, CSI Market, https://csimarket.com/Industry/Industry_Data.php?ind=1011, dostęp 28.07.2017.
19. Softword: Provenance for the Word ‘Software’ [2006], http://www.niquette.com/books/softword/part0.htm, dostęp 28.07.2017.
20. Tunguz T. [a], Benchmarking New Relic’s S-1 – How 7 Key SaaS Metrics Stack Up, http://tomtunguz.com/new-relic-s-1/, dostęp 28.07.2017.
21. Tunguz T. [b], Not All Revenue Dollars Are Created Equal, http://tomtunguz.com/not-all-revenue-dollars-are-created-equal/, dostęp 28.07.2017.
22. Tunguz T. [c], The Importance of Payback Period for SaaS Startups, http://tomtunguz.com/payback_period_cash/, dostęp 28.07.2017.
23. Tunguz T. [d], Why Negative Churn Is Such a Powerful Growth Mechanism, http://tomtunguz.com/negative-churn/, dostęp 28.07.2017.
24. Understanding MRR, SaaSoptics, http://www.saasoptics.com/saaspedia/calculating-mrr, dostęp 28.07.2017.
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Published
2019-08-01
How to Cite
Małysz, M., & Martysz, C. B. (2019). SaaS business model companies: characteristics and performance assessment metrics. Studies and Work of the Collegium of Management and Finance , (170), 41–57. https://doi.org/10.33119/SIP.2018.170.3
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