Saasonomics is a science that studies economics of on-demand computing. Although saasonomics looks at the on-demand industry as a whole, its main goal is to study the software as a service field. Origin The term saasonomics comes from the word SAAS (software as a service). It has been coined by Matt Shlosberg, a businessman who co-founded several firms in the SAAS field. Although this field is relatively new, numerous books and articles have been written about it. Coverage Because this field is new, there are many disputes about what should be covered by saasonomics. Matt Shlosberg's book Saasonomics 101 breaks down the study of saasonomics into that of economics, marketing strategy, advertising, and buyer psychology, hinting that these are just key points of saasonomics and many other topics exist. He also mentions that saasonomics covers the entire on-demand economy, although most people refer to the SAAS industry as that being studied. Key points Saasonomics looks at metrics that define the unique business model of SAAS. These metrics include simple measures, such as the committed, projected, and actual recurring revenue, churn, customer stickiness term, as well as some more complex concepts, such as cost of trial customers, customer acquisition cost, total cost of trial, return on advertisement, marginal breakeven rate, and cost of free customers. In addition to the mathematical point of view, saasonomics studies strategies SAAS firms should employ in order to win in their game and methodologies they use to advertise and draw customers.
|