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Software as a Service (SaaS)

An advantaged business model in the technology industry and beyond

Cloud computing and subscription-based business models are changing the software industry. By the end of 2016 SaaS represented 25% of the total enterprise software market. It is expected to reach 40% by 2021—a significant milestone to achieve in such a short period of time.

Customers, vendors, and investors alike are reaping the rewards. Customers are enjoying increased flexibility and lower total cost of ownership. Vendors are seeing a rejuvenation in core businesses and moving from stagnation to growth. Investors are happy with higher returns as the market values SaaS companies two to three times higher than their on-premise equivalents.

The SaaS journey is hard. It's a different business model that requires new operating practices. At BCG, we've helped numerous clients through the journey. We've helped traditional software companies make the shift from selling on-premise licensed software to SaaS. We've helped SaaS natives accelerate their performance. And we've helped companies in other industries build SaaS businesses and new value propositions on top of their traditional businesses.

To learn more, contact us at SaaS@bcg.com.

Self-Assess Your SaaS Maturity

BCG's SaaS Excellence application allows users to assess the maturity levels of their SaaS capabilities, and their maturity as SaaS companies overall. The app instantly provides an initial, high level understanding of potential areas for improvement.

The tool consists of:

A quantitative survey to assess the true health of the business
A qualitative survey to assess the level of maturity in the operating model

Get the BCG App: SaaS Excellence

BCG SaaS Excellence is a tool that allows users to assess the maturity of their software-as-a-service capabilities.

Learn more about BCG’s SaaS application

BCG’s Work in Software as a Service

Kronos, a workforce management software provider, is undergoing a transformation to SaaS. BCG has facilitated this change. Watch the video to see Kronos’ leaders share their thoughts on what triggered the shift, what it takes to transform, and what the benefits are.

Kronos Transitions to SaaS

With the help of BCG, a leader in workforce management software transformed the very core of its business. Learn how BCG enabled their transition into a software as a service (SaaS) company.

The One Ratio Every Subscription Business Needs to Know

Companies transitioning to a subscription model all ask the same series of questions. BCG explores how LTV/CAC can inform the answers.

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Five Selling Secrets of Today’s Digital B2B Leaders

To understand what makes digital B2B sales leaders tick, The Boston Consulting Group undertook a study of the end-to-end selling models used by a dozen next-generation sales leaders. Find out what we learned.

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Developing Software at the Speed of the Cloud

Four principles guide how world-class cloud teams operate. These principles can help more traditional teams modernize their software-development practices.

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Cracking the Code in Private Equity Software Deals

Serial and experience software investors are outperforming others. They typically apply four industry-specific value creation levers: sales and pricing initiatives, cloud/software-as-a-service (SaaS) transformation, productization, and state-of-the-art software engineering.

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