How to Choose the SaaS Pricing Model for your Business?

Many enterprise software companies have been shifting their business model from On-premise model towards subscription license-based software-as-a-service (SaaS). While there are long term benefits in form of business growth, lesser infrastructure support and administration, there are challenges faced in sustenance of the business in SaaS model. Some of the companies which try to make high profits in short span of time run out of business due to incorrect choice of pricing model. Choosing the right pricing model is a key to successful transition. Failure to capture the real price not only eliminates the profits but also damages SaaS market, especially when a company provides too much discounts. This article gives an overview of SaaS model, and details on various pricing models and gives insights on how to arrive at a pricing model according to business.