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A/B Testing

Business to Business Software as a Service

Cloud software sold to other businesses via subscription

Business to Business Software as a Service refers to cloud-based software applications sold to other businesses through subscription models rather than one-time licenses. This delivery model has transformed enterprise software by offering scalability, accessibility, and predictable pricing. B2B SaaS products are hosted by vendors, accessed via web browsers or APIs, updated automatically, and paid for through recurring subscriptions. This contrasts with traditional on-premise software requiring installation, maintenance, and upfront capital expenditure. Key characteristics include multi-tenant architecture serving multiple customers, subscription-based recurring revenue model, rapid deployment without hardware requirements, automatic updates and maintenance, scalable infrastructure and pricing, and integration capabilities via APIs. Product managers in B2B SaaS focus on metrics like ARR, churn rate, customer acquisition cost, lifetime value, net revenue retention, and time to value. The business model requires balancing product development, customer success, and efficient growth. Success depends on achieving product-market fit, demonstrating clear ROI, minimizing churn, and expanding within existing accounts. The subscription nature creates ongoing customer relationships, making retention as important as acquisition. Product strategy emphasizes solving business problems, integrating into existing workflows, demonstrating measurable value, and building sustainable competitive advantages.

Understand B2B SaaS in product management. Learn how subscription-based cloud software serves business customers with scalable solutions.