Software Developers Are Turning to the SaaS Model

When it comes to software for hosting and reselling, the current market traditionally relies on selling licenses with set terms.  This is by far the most popular business model, but as more and more companies are offering subscription based options that generate more revenue, the market as a whole is shifting towards an SaaS or subscription as a service business model.  Plesk, cPanel, and many of the other major names in hosting software are already offering this as an option, and it is proving to be a major revenue generator.

When someone is first considering hosting or reselling, they want to know that they can generate results and revenue before committing to a long term license.  Trial licenses can be effective for this, but as ClientExec, WHMCS, and others are learning, the subscription as a service business model is simply more effective, offering the option to pay for the rights to use the software monthly rather than requiring that customers make a long term commitment.  Monthly prices often generate higher overall revenue over the same amount of time as a traditional license while giving the consumers more control over whether they keep software that they may not like.

Hosting licenses are starting to be phased out, at least in the way we think of them now, and subscription based hosted licenses for online software seems to be the market trend that we will see the most of in the years to come.  The needs of consumers are always changing, and it is the role of software developers to ensure that programs such as Plesk and cPanel are keeping up with these needs.  Subscription as a service licensing makes things easier for consumers and more profitable for software sellers, providing benefit to all involved that certainly increases the chances of this becoming a permanent trend.