It used to be that software companies could become very large – and very successful – by putting a bunch of “shelf ware” into the market. In other words, it didn’t matter whether the customer used the software. As long as the customer paid that fat licensing fee, the vendor was happy. In the old enterprise software world, many large companies were built on this model.
Web-based software (hosted, SaaS, on-demand, in the cloud, etc.) is different. If the customer doesn’t use the software, the vendor is unlikely to achieve success since the customer pays on an ongoing basis instead of paying a large licensing fee. If the customer doesn’t get value, the customer stops paying. Simple as that. This model is great for aligning the interests of the customer and the vendor, which is why it has become the norm over the past 10 years.
To read the full, original article click on this link: 3 strategies to achieve web start-up success | VentureBeat
Author: Clate Mask
