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Getting to SaaS

May 12, 2008,
by volcanic

h2. How to convert from a licence to a subscription model.

h3. The founders of many software companies want to make the transition to becoming a SaaS vendor. The operational challenges of making this shift are significant, impacting every part of the company: technology, sales, services and pricing. Not least, the transition can have a dramatic impact on cash collection which, if not managed appropriately, can sink the business.

We have worked with a number of software vendors that have made the transition to SaaS and have found some useful lessons to ensure success. In several cases we have been able to complete the shift fairly quickly, migrating to a recurring revenue model for the majority of the business in as little as two quarters. Here are some key lessons learned that have worked well for these companies.

This article was originally published at – Business Strategy for Software Executives