This article looks at the high level goals of a SaaS business and drills down
layer by layer to expose the key metrics that will help drive success.
Metrics for metric’s sake are not very useful. Instead the goal is to
provide a detailed look at what management must focus on to drive a
successful SaaS business. For each metric, we will also look at what is
Before going any further, I would like to thank the management team at
HubSpot, and Gail Goodman of Constant Contact, who sits on the HubSpot board.
A huge part of the material that I write about below comes my experiences
working with them. In particular HubSpot’s management team is comprised of
a group of very bright individuals that are all very metrics driven, and they
have been clear thought leaders in developing the appropriate tools to drive
their business. I’d also like to thank John Clancy, w... (more)
Earlier this year I wrote an article describing how Enterprise JavaBeans had
impacted the application server market, causing a convergence between Web
application servers and distributed object and transaction servers. With the
advent of the J2EE (Java 2 Enterprise Edition) standard, we're about to
witness another seismic shift in this market.
It's worth looking at what J2EE is - and isn't. J2EE builds on the Java 2
standard, and adds specifications for most of the important programming
interfaces in an application server. Key interfaces are EJB for middle-tier
logic, and servle... (more)
“If you cannot measure it, you cannot improve it” – Lord Kelvin
This article is a comprehensive and detailed look at the key metrics that are
needed to understand and optimize a SaaS business. It is a completely updated
rewrite of an older post. For this version, I have co-opted two real
experts in the field: Ron Gill, (CFO, NetSuite), and Brad Coffey (VP of
Strategy, HubSpot), to add expertise, color and commentary from the viewpoint
of a public and private SaaS company. My sincere thanks to both of them for
their time and input.
SaaS/subscription businesses are more complex th... (more)
2014 Pacific Crest SaaS Survey – Part 1
For the third year in a row, we worked together with Pacific Crest
Securities, an investment banking firm with a specific focus on SaaS, to
survey 306 SaaS companies.
This represents nearly double the # of respondents from last year, giving us
deeper benchmarking data and insights to share on the growth and operations
of the companies in this space.
We also welcome this year the participation of OpenView, an expansion stage
venture capital firm specializing in B2B Software, who brought additional
I want to extend my personal than... (more)
2014-15 Bridge Group SaaS Inside Sales Research Survey
The Bridge Group is known for publishing insightful studies that aid SaaS
Sales & Marketing leaders to build and optimize their inside sales
strategies. They are working on the 5th round of their SaaS inside sales
research and would like our help completing a 6-7 minute survey. Your answers
will remain anonymous, and in return the research promises action-oriented
guidance on compensation benchmarks, selling strategies, productivity and
performance best practices, and more.
If you are able, please take a few moments to fill o... (more)