Churn
**** Please note that this post has been superseded by A Fresh Look at How to Measure SaaS Churn Rates. I'm leaving it posted to protect in-bound links only and to provide a referral to my latest material on this subject. **** While I've already done a comprehensive
Cloud
Chatting with some SaaS buddies the other day, we ran into a fun -- and fairly subtle -- SaaS metrics question. It went something like this: VP of Sales: "-- Wait a minute, our ACD on new business is 2.0 years. If customers are renewing for shorter terms
Cloud
I'm a big fan of software-as-a-service (SaaS) metrics. I've authored very deep posts on SaaS renewals rates and customer acquisition costs. I also routinely point readers to other great posts on the topic, including: * David Skok's excellent posts on SaaS metrics * Bessemer's
Cloud
One thing that amazes me is when I hear people talk about how they analyze churn in a cloud, software as a service (SaaS), or other recurring revenue business. You hear things like: * "17% of our churn comes from emerging small business (ESB) segment, which is normal because small
SaaS
While I did my own post on the Box S-1, I also noticed that fellow CEO blogger, Tien Tzuo of Zuora, had done a post of his own with the catchy title These Numbers Show That Box CEO Aaron Levie is a Genius. I saw the post, clipped it to
Marketing
[Major revision 5/11/14 5:10 PM] * "There are lies, damned lies, and statistics" -- Benjamin Disraeli. * "All media exist to invest our lives with artificial perceptions and arbitrary values." -- Marshall McLuhan, philosopher of communications theory and coiner of the phrase "the medium
Enterprise
The software-as-a-service (SaaS) space is full of seemingly simple metrics that can quickly slip through your fingers when you try to grasp them. For example, see Measuring SaaS Renewals Rates: Way More Than Meets the Eye for a two-thousand-word post examining the many possible answers to the seemingly simple question,
Cloud
**** Please note that this post has been superseded by A Fresh Look at How to Measure SaaS Churn Rates. I'm leaving it posted to protect in-bound links and because I think it's still worth reading, but if you want my latest thoughts on how to calculate
SaaS
If you've ever wondered what drives the valuation of a SaaS vendor, then take a look at this chart that a banker showed me the other day. The answer, pretty clearly, is revenue growth. The correlation is stunning. Taking some points off the line: * 10% growth gets you
SaaS
I had breakfast the other day with a software entrepreneur. When I asked if his company was on a subscription or perpetual model he said: “we should kill the guy who invented the perpetual license -- I’m on the perpetual money model, subscription all the way.” Having worked largely
SaaS
[Revised, rewritten, and replacing a post from yesterday] One question we encounter with our Information and Media customers is whether they should buy MarkLogic Server and build an application on top of it, or use a SaaS offering (which may or may not be based on MarkLogic) and effectively rent
