Despite the hype and sky high market capitalizations, many SaaS companies have struggled to turn a profit. TSIA VP Research & Advisory, XaaS Product Management, Laura Fay shares her insights into the SaaS business with Ibbaka.
Early stage innovators often gravitate to horizontal solutions. This can drag down their pricing power as they end up pricing to the lowest common denominator. Build value and pricing power by delivering a business solution to a targeted segment (a real segment gets value in the same way and buys in the same way).