Our simple cheat sheet of metrics can help you pinpoint ways to improve the profitability of your SaaS business.
The term IaaS is used almost exclusively to describe virtualised solutions, like AWS and Azure, but since cloud infrastructure is, in reality, tin, bare metal cloud should be included in the scope of the term.
What is IaaS?
Infrastructure as a service describes the provision of processing, storage and networking (and potentially) other basic computing resources, over a network and in an on-demand fashion.
Infrastructure as a Service is one of three levels in the cloud computing stack model commonly used to describe the different types of service that hosting companies can provide.
IaaS is the bottom, or most basic, layer of the cloud computing stack model and describes a situation where a provider supplies a customer with just the infrastructure required to run their application(s). This differs from Platform as a Service (PaaS), which includes things like development tools, runtime environments and ready-made databases, and Software as a Service (SaaS), in which users are given access to a fully functional application.
Adopting Infrastructure as a Service (IaaS) for your SaaS business could dramatically reduce costs, increasing customer lifetime value and helping you achieve or grow profitability.
SaaS profitability is commonly assessed in terms of the ratio between Customer Acquisition Cost (CAC) and customer Lifetime Value (CLV), the rule of thumb being that a CLV > 3x CAC is the sign of a healthy SaaS business.
Clearly then, increasing CLV and reducing CAC leads to greater profitability per customer and a more profitable business.
Becoming a hosting reseller can be a lucrative means of starting a new business or cross-selling to your current customer-base, without the complexities of setting up and fully managing your own infrastructure. By employing your technical hosting knowledge, you can benefit from a recurring income and a long-term relationship with customers.
Organisations choosing to co-locate their servers outside of London have the benefit of accessibility, reduced latency, affordability and increased security.
The fact is that the Greater London area has the highest concentration of data centres in the UK, and for many organisations, it will be the only location they consider. But with new hubs popping up in places such as Manchester and Birmingham, more and more regional businesses are looking at the benefits that colocation outside of the capital can offer them.
Moving your existing servers out of your own premises and in to a data centre improves reliability and security while granting access to sophisticated connectivity and hybrid cloud computing options.
IT and applications are increasingly moving to the cloud, but there are still a great many servers sitting in offices around the world. These servers can be a drain on their owners, who have to manage and maintain them, and they still remain vulnerable to a wide range of business risks including fire, theft and connectivity outage.