Reinventing New Settings Revenue Streams through SAAS and Cloud

20.09.18 04:01 AM By Praveen Kumar J

Cloud-computing and SaaS are different, but closely related terms of the same idea.


The terms cloud is seemly used to describe everything nowadays. Many software providers are offering cloud-based systems.

What is the cloud?

The cloud can be thought of as the internet.

If you’re using cloud-based software, you can use the internet to access that system whenever and wherever you are. You just need an internet connection and the ability to log into the system via a web browser.

Before cloud-computing, companies would need their own servers or computers at their office in order to use software. You would have to physically install a CD on your personal computer to use it. Then, you could only access your data on that computer.

For cloud-computing, however, a 3rd-party is hosting your software on a remote server where they store and process your data. These servers are housed in data centers all over the world.


When you want to access your data, you just open up your Chrome browser and log into your account. You can be on a desktop computer, phone, or PC. You can be at the office, home, or at the airport. It doesn’t matter, as long as you got WiFi.

What is SAAS?

Software as a Service is a software licensing and delivery model in which software is licensed to a user. The software, or application is accessed via the internet and a web browser. You do not need to install and maintain the software.

The application runs on the SaaS provider’s servers. The 3rd-party provider then is responsible for the security, performance, and maintenance of the application on their servers.

Typically, SaaS applications are licensed on a subscription basis. You pay a monthly fee based on level of service and number of users needed. In this way, a SaaS delivers and maintains their application to you over the internet, as a service.

Revenue Streams

You can generate revenue from monthly subscription from your customer. Major part of the revenue is generated by this model for SaaS business.


You can upsell your SaaS product for your existing customer so the customer’s value improves as well as your revenue.

3.More Storage, Speed, or Data
The customer values can also be improved by increasing the storage, speed, or Data for the services customer are using. It leads to value added service for the customer for which charges can be applied.



Application Programming Interface is a way through which you can connect your application with 3rd party application so the data can be transferred between both. APIs are way through which you can integrate any existing application of customer with yours. These integrations can help in revenue generation for the SaaS adopters.


5.Setup Fees

Setting up means getting onboard to your SaaS application with the customer environment. Options of providing free subscription for a minimum period followed by upgrade to the paid subscriptions generate revenue and also allow customers to have a hands-on before use.


6.Customer Service

Customer Services is a costly affair for the company due to staff training and knowledge transfer. However, providing self-service portals/knowledge base along with BOTS assistance enhance the customer support and service. This is a clear revenue generating approach for long term contracts or services to be offered to customers.


Above listed are some of the revenue streams that a SaaS business can make use of.


Have you tried any other revenue generating approach for your SaaS Business?