Analyzing Cloud Computing and Software-as-a-Service Businesses

Looking to start a software-as-a-service business or get a better handle on operational data for an existing cloud-based company?  I’ll be summarizing my work around key SaaS metrics and other important analytical considerations  on this page going forward – if you scroll down you’ll find important topics and links to prior posts with more detail.  This page will be updated as new content is published so please check back often or subscribe to receive updates in real-time.  If you have specific questions or subjects you would like to see explored, feel free to leave a comment below.

An Introduction to Benchmarking SaaS Businesses (and the importance of component level analysis!)

The Seven Key SaaS Metrics

1. tCAC:  Total Customer Acquisition Cost

2. ARPU:  Average Revenue Per User

3. RGP:  Recurring Gross Profit

4. GMPP:  Gross Margin Payback Period

5. eLT:  Expected Lifetime

6. LTV:  Lifetime Value

7. rCAC:  Return on the Customer Acquisition Cost

Conclusion: Applying the Framework

Visualizing SaaS Metrics

Learn more about visualizing SaaS metrics