List and describe the four pricing models commonly used in the software industry.

Expert Solution

Few SaaS pricing models are given below, which is selected based on the number of customers ,type of services , how long customer will use and so on.:

1. Per User Pricing : Based on the number of people using the service ,price is determined . It's disadvantage is ,it limits the number of active user. So if a company with multiple user, think before using this SaaS model , because in some cases it won't work well.

2. Per storage pricing : Base on the storage requirements pricing varies. Upto a certain limit it provides free service ,after that if the user need to continue service they have to upgrade or pay a certain amount.Dropbox is an example.

3.Feature based pricing ; It is based on the services they offer. It is classified into different tiers and each contains different set of services offered. Each category is limited based on the amount and features.

4. Pay as you go : Based on the amount of services used price is calculated. So the customers won't able to calculate the cost sometimes ,because there is no way to identify how much they have used.It is well suited for customers with change in service usage.

venereology answered 1 year ago

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List and describe the four pricing models commonly used in the software industry.

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