Which SaaS Subscription Software Support Recurring Payments

Mainly there are two types of SaaS subscription models i.e. term basis SaaS subscription model and monthly basis SaaS subscription model. Detail of which are cited below for a better understanding.

In this term basis SaaS subscription model, the customer performs an electronic or a paper contract agreeing to a particular subscription for a period of time. The subscription agreement may or may not include provisions for the cancellation during the term. Cancellation provisions in a term agreement typically include pre-defined retrieval charges or penalties.

With term SaaS subscription model, payment terms are flexible, including monthly, quarterly, yearly or an agreed-to schedule or invoicing and payment terms. Again, how the customer pays and the frequency do not define the nature of the subscription in such type of agreements. Furthermore, Freemium is often described as a model. Freemium as actually a sales and marketing strategy that can only be employed in either the monthly or term subscription models.

In the Monthly SaaS subscription model, the customer is charged and pays each month, frequently through the option of credit card i.e. automatic e-payments. While there is typically an electronic license agreement, there is no term involved or the term is simply a month. Typically, the customer can cancel at any time without the penalty or fee hassle. While at times, some monthly subscription businesses do offer quarterly and annual payments.

The payment method, frequency, and payment terms in themselves do not change the nature of the customer and vendor obligations if the model is a true monthly subscription. Under a monthly subscription model, an annual prepayment would typically be refunded if the customer cancels prior to the end of the period for which he paid prior/prepaid. Monthly subscription models may include fixed or variable fees, or both as a combination.

SaaS comes with a set of risks and challenges that businesses need to be aware of in order to maximize the benefits of the delivery model. Similar to other cloud services, users of SaaS rely on their service providers to be up and running at all times so that they can access applications as needed. They also depend on the providers to ensure that the software is being kept up to date in terms of new features, security patches, and other changes.

Although SaaS subscription software providers take great measures to ensure continuous uptime and availability, even the largest retailers can experience unexpected interruptions in service. Businesses that use SaaS can expect to lose some level of control when it comes to accessibility, which is one of the trade-offs or a disadvantage of cloud computing in general. Moreover, Security and privacy are also one of the many issues, as they are with any other cloud service. If service provider experiences a data breach that can compromise safety of the enterprise’s data and the availability of the services. It makes it difficult for businesses to intact their confidential data. Other potential risks involved in SaaS subscription software is the service quality and user experience. Despite improvements in networking technology, because SaaS applications might be hosted far from where users are located, there can be invisibility issues that affect response times for applications.