What You Need to Know About Adding a SaaS Component to Your Hardware or Software Business
Many market-leading companies who have dominated their respective sectors with hardware or on-prem/installable software solutions are turning to SaaS offerings to fuel the next phase of their growth. Why? Simple. Market valuations are much higher for SaaS companies than they are for traditional software and hardware companies. The median multiple on earnings for a SaaS company is 12.7x as of Q3 2021 according to venture capitalist Jamin Ball who tracks the Public Cloud Software (e.g.