SmoothSpan Blog

For Executives, Entrepreneurs, and other Digerati who need to know about SaaS and Web 2.0.

Phil Wainewright On SaaS Costs

Posted by Bob Warfield on August 7, 2007

Phil writes about the cost of sales and marketing, and quotes our blog post on the subject.  He’s correct that the original post did not give the full story on where the perpetual data came from, so I’ve updated it to reflect that it came from all public enterprise software companies with less than $350M revenues most recently reported numbers according to EDGAR filings.

It is surprising how long its taken for the quantitative data to get out on how much cheaper it is for SaaS companies to acquire customers.  There is a clear indication of economic forces at work that will ultimatley move a lot more of the enterprise world to SaaS.  Certainly looking at SandHill.com’s latest posts along these lines shows that Software Co. CEO’s understand what’s at stake and agree the SaaS tidal wave is virtually unstoppable by this time.

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