Revenue Models and Pricing Strategies in the B2B SaaS Market

  • David Dempsey
  • Felicity Kelliher
Chapter

Abstract

A revenue model describes the revenue flow in a business and the firm’s underlying framework for generating sales. Customers in the Business-Business (B2B) Software as a Service (SaaS) relationship subscribe to a specific level of service, normally for a defined period of time wherein the ‘per user’ fee paid will typically be a fraction of the traditional perpetual per user licence fee. This chapter details various commercial service market revenue models and the means through which alternative SaaS pricing strategies can be applied in a B2B setting. The chapter goes on to detail total cost of ownership before presenting a means through which SaaS providers can move from strategy to price in this market.

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • David Dempsey
    • 1
  • Felicity Kelliher
    • 2
  1. 1.SalesforceDublinIreland
  2. 2.Business SchoolWaterford Institute of Technology Business SchoolWaterfordIreland

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