Which billing frequency do the largest percentage of your SaaS apps fall into?
Monthly46%
Quarterly36%
Annually17%
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CTO in Software2 years ago
In a startup environment, cash flow is key, and a year is a long time, especially when trying to work out the number of seats etc. I've never paid for any SaaS in a startup environment annually and never will.
I've found that many SaaS models are actually annual, under the guise of being monthly.
For example: GitLab, DataDog, SumoLogic, Dynatrace all require an annual commit for "enterprise" level subscriptions. They will happily scale up your cost monthly if you need it, but limit the customer to scaling down annually.
It's the old-school datacenter buying model under the guise of a scalable cloud model.
I totally understand the model from their perspective, but as a customer, don't like it at all. I want to scale up AND down more frequently.