SaaS Solutions.
Benefits for users and developers

Software as a Service (SaaS) is a subscription-based software licensing model. The provider develops and maintains applications, programs, places them in the cloud and makes them available to the user. The customer pays for access and receives an out-of-the-box tool.

Examples of such solutions include

  • Cloud-based data storage, such as Dropbox or Google Drive;
  • HR or customer service management systems: CRM, Hubspot, Salesforce, ERP, and others;
  • Design or project development services: Canva, Figma, GitHub.
  • eCommerce platforms: WooCommerce, Shopify, OpenCart, Magento, etc.

Customer Benefits

The user receives fully customized and ready-to-use software. It can be used from any device with an Internet connection. Data is stored and processed on the software vendor’s servers. They have a high level of protection and security, both physical (e.g. against fire or theft) and informational.

This business model allows the customer to save money on physical infrastructure and licensed software purchases. Leasing cloud resources eliminates the need to purchase hardware and reduces capital expenditures. In addition, users do not purchase the software they need. Instead, they simply rent the application. Payments can be made on an annual or monthly basis.

Users do not need to invest in additional support and application feature updates: the stable operation of the SaaS solution and the constant access of clients to the server are the responsibility of the provider. The cost of these services is included in the subscription price of the business SaaS solution.

Any user of the corporate IT system has access to information in the cloud regardless of geographical location and time of day. They can use a computer, tablet, or smartphone.

Fully customized SaaS by Filio Force development

Benefits for the Owner

SaaS services have the advantage of low implementation costs. The SaaS model simplifies application management, increasing agility and ease of deployment. Cloud services can be easily integrated with each other and with different systems running in the enterprise. For a system developer, the cloud service model is a good incentive to continuously develop their products.

Software owners can effectively fight against illegal use, as SaaS cannot be copied from computer to computer.

Regular payments from customers for the use of software products provide a stable income. It allows to work out a long-term strategy of project development.

Is it worth launching such a service?

In the SaaS model, software is not sold as a product with a final value, but is essentially turned into a financial instrument with a predictable cash flow and sold in that context.

If the product does not meet users’ expectations, they will cancel. In such a project, it is important to work on LTV (average revenue per customer lifetime; also called customer lifetime value). To keep this indicator at a high level, you should pay close attention to the quality of service. If customers are satisfied with the service, they will stay with you for a long time. Through regular payments from customers, it will be possible to achieve a stable profit and then reinvest the funds in further development and scaling.

What metrics should be tracked for successful project development?

  • LTV – calculated as the product of the amount paid by the customer for a given period (e.g., one month) and the number of periods in which the service was used.
  • CAS – cost per customer. To calculate this indicator, you should divide the cost of acquiring a client by the number of new clients for a given period.
  • Churn Rate. The number of customers who left during a given period should be divided by the total number of customers at the beginning of the period.
  • ARPU – the average revenue you get from each active user for a period of time. To calculate the average revenue from a user for a month, you should divide the total revenue for that month by the number of users who were active during that period.
SaaS as financial instrument by Filio Force it company

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If you are planning to implement SaaS in your company, our experts will advise you and help you decide which solution will be the best. After defining the goals and objectives, we will develop a product that includes all the necessary functionality. After the implementation, Filio Force Inc. will provide further maintenance and technical support.

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