Welcome to The Cirrostratus Group November newsletter.

It's always a worthwhile endeavor to compare your SaaS business to other successful SaaS businesses. The Openview Partners Financial and Operating Benchmarks Report just came out. It is based on a variety of sizes and maturities of SaaS businesses and has a lot of great information in it. Here is a good summary of the results.

A continuing trend outlined in the above is the increased use of usage based pricing for SaaS. Openview has also published survey results on this trend along with a summary. Although there is a clear trend toward usage based pricing, a significant amount of that pricing is a hybrid of usage and subscription pricing. I like the approach that New Relic has taken where they use a combination of usage and subscription tiered pricing. Some good information on this hybrid approach is available in this description of New Relic's pricing change. Although complicated I think this is the approach that works best for many enterprise level customers, it combines the best of both approaches.

Paul Ressler
The Cirrostratus Group