I presented some of my thoughts on SaaS Monetization in the SaaSEconomics Summit / SLAM 2008 conference. You can order proceedings of the SaaS Economics Summit from their website, http://www.infowebcom.com/conf_cdorder2008.php
Following is a brief description of my talk.
The SaaS model of software delivery causes a host of operational and revenue generation challenges for businesses. This talk will illustrate the different scaling issues SaaS vendors face, and the monetary impacts of these issues. It will elaborate on the recurring revenue subscription model, and how it forces SaaS vendors to be mindful of ensuring client success for contract renewals. The talk will then explain the telecom industry approach to selling subscription services in large volumes, and the similarities of this in the SaaS industry. This will include an architectural overview of the various Telecom OSS/BSS (Operational Support Systems/Business Support Systems) components needed to efficiently deliver the services. The presentation will then elaborate how and why SaaS vendors should be thinking about a similar model for servicing their customers. It will describe the key components of the architecture that SaaS vendors must build, which will include the service catalog, order fulfillment, and billing like the telecom industry has done for several years.