Anyone who has been following startup news in recent years is likely to have noticed that Software-as-a-Service (SaaS) companies have been getting quite a bit of attention, and it doesn’t seem to be slowing down at all.
With SaaS-based delivery, the vendor provides their customers with access to software over the Internet, typically in a subscription-based. This approach eliminates the need for companies to purchase and deployment massive amount of expensive hardware and software infrastructure. As corporate finance leaders increasingly prefer to acquire operational technologies in an OpEx model (as opposed to a CapEx model), SaaS-based technologies companies have the upper-hand in competing for new business.
Reasons for Starting a SaaS Business
Any entrepreneur looking to start a software business should consider a SaaS model for the following reasons.
With a SaaS model, your company can create revenue streams where each newly acquired customer can contribute to your revenues over the long-term. So if your goal is to sell your company at some point, having this recurring stream of income can help you support a strong valuation.
SaaS-based software tends to offer your company higher margins than a distributed software model. This is due to the fact that most companies can charge a premium for SaaS delivery along with lower costs for the management of a centralized platform.
As long as your technology works well and your features are current with your industry, you can expect the majority (as much as 90%) of your customers to renew their contracts with you. If your sales team continues to perform well, you can expect to see your revenues grow over time.
Unlike distributed software, managing a SaaS platform allows you to push maintenance updates and new product features out to your entire client base, all at once. This helps to minimize your support costs and ensures that each of your clients is accessing the same, state-of-the-art version of your software.
White Label SaaS Business
A relatively recent development in the software industry is in SaaS-based providers allowing partner organizations to offer a branded version of their platform. Known as “White Labeling”, this model enables the SaaS to drive their revenues through a channel partner strategy.
For channel partners, working with a white label SaaS offering provides several significant benefits:
While building your own SaaS platform can be very expensive (often hundreds of thousands of dollars or even millions), a white label partnership provides the opportunity to offer a proven technology at a fraction of the cost for development. In addition, the SaaS vendor takes responsibility for the ongoing management and maintenance of the platform.
In addition to high cost, building an enterprise-level SaaS platform can take many months, or even years, to develop. A white label SaaS partnership eliminates this wait time, allowing to launch your business and build a revenue stream right away.
An added benefit in white label SaaS partnerships is in allowing your company to offer powerful technology under your own company branding. Often, the SaaS vendor will even have ready-made marketing and other supporting content, on which you can also add your own company branding.
LMS Portals: A Turnkey B2B SaaS Business Opportunity
At LMS Portals, we provide our partners with a SaaS-based, multi-tenant learning management system (LMS) that allows an administrator to launch and manage a dedicated training environment (portal) for each of your unique audiences. The platform is white labeled, enabling you to apply your own branding elements for each portal you launch.
In addition, each portal includes a powerful course development engine, along with robust tools for user onboarding, group management, learning path creation, live remote training, certificate awarding, analytics, and more.
We also provide our partners with an extensive library of ready-made courses, covering most every aspect of corporate training and employee development.