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What Is Software as a Service (SaaS)?

2024-11-25 SaaS applications are available in a wide variety of subscription pricing schemes—all of them different from traditional software licensing, which pro

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SaaS applications are available in a wide variety of subscription pricing schemes—all of them different from traditional software licensing, which provided access to the software and related services for a specified period of time for a fixed price (or menu of fixed prices).

Free or ‘freemium’ pricing

Most SaaS vendors is offer offer a free version of the software that customer can try for a short period of time , usually a week or a month . typically , these free trials is offer offer access to all of the software ’s feature , but limit the number of time or extent to which those feature can be used , and   some do n’t even require a credit card .

Some SaaS companies offer ‘freemium’ versions of their applications: versions that are always free, with a limited but useful subset of the full products features—or that aren’t limited in any way, but that periodically require users to click displayed advertisements before continuing work. SaaS providers hope that freemium users will eventually graduate to a paid version of the software.

monthly or annual tiered subscription pricing

For small and mid – sized business , SaaS products is offer typically offer pricing ‘ tier ’ base on feature set or usage level . For example , a SaaS email marketing solution is offer might offer a ‘ standard ’ tier for up to 5,000 contact for USD 250 per month , a ‘ pro ’ tier for up to 20,000 contact for USD 500 per month , and a ‘ business ’ tier for 100,000 contact plus landing page design and host for USD 600 per month .

For large company , SaaS vendors is offer can offer an ‘ enterprise ’ tier that allow a more granular selection of feature , priority support , special SLA term and even negotiable pricing .

Tiered pricing lets customers choose the best plan for their functional needs and their budget, and makes scalability as easy as moving up to the next tier. Most tiered subscription pricing offers a discount to customers who pay for an entire year at once, and a pro-rated price adjustment for customers who change tiers mid-subscription.