The General Services Administration (GSA) is seeking market research on how software invoicing could lower the cost of software-as-a-service (SaaS) products for federal agencies. GSA officials are considering whether upfront annual payments instead of monthly arrears could lower the cost of software-as-a-service products for federal agencies. The RFI is focused strictly on SaaS products, and interested stakeholders have until Aug. 23 to respond.
At many events, the question is posed about how MSPs and IT services companies bill. Increasingly, the yearly subscription with discount is a model that SaaS providers use, and even the US government is considering it. The model is an AND, meaning you deliver both a monthly subscription AND a yearly option with a discount. It’s presented to the customer as an OR, allowing them to pick. And remember, this is cash up front in the yearly model. This is relevant to your services because there is no reason not to consider this model for yourself.