The SaaS Business Model A Recurring Revenue Engine

The SaaS business model has revolutionized the software industry, transforming the way businesses acquire and utilize software. In this model, software is delivered over the internet as a service, typically on a subscription basis. This differs significantly from traditional software licensing models where customers purchase a perpetual license for software installation and ownership.

Key Characteristics of the SaaS Business Model

• Subscription-Based Pricing: The core of the SaaS business model is recurring revenue generated through subscription fees. Customers typically pay a monthly or annual fee to access and utilize the software. This predictable revenue stream provides a strong foundation for long-term