SaaS
Definition
SaaS: Software as a Service (SaaS) is a software distribution model where applications are hosted in the cloud and accessed via subscription. SaaS eliminated the need for local installation and enabled recurring revenue models that transformed the software industry.
Example Usage
“Our SaaS model charges $99/month per user, with pricing tiers based on features and usage.”
Common Misconceptions
Related Terms
Monthly Recurring Revenue
Monthly Recurring Revenue (MRR) is the predictable revenue a subscription business expects to receive every month. It's calculated by multiplying the...
Annual Recurring Revenue
Annual Recurring Revenue (ARR) is the yearly value of recurring subscription revenue, calculated as MRR multiplied by 12. ARR is the primary metric fo...
Churn Rate
Churn rate measures the percentage of customers or revenue lost over a period. Customer churn counts lost accounts, while revenue churn measures lost...
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