B2B SaaS
B2B SaaS (business-to-business software as a service) is software that a company sells to other businesses on a subscription basis and delivers over the internet instead of installing it locally.
Also called: business-to-business software as a service
Why it matters
The SaaS model changes how software companies sell and grow. Customers pay over time instead of up front, so revenue builds month after month and keeping customers matters as much as winning them. This is why B2B SaaS companies track metrics such as ARR, MRR, churn, net revenue retention and customer acquisition cost so closely.
Go-to-market motions range from product-led, where users sign up on their own, to sales-led, where account executives work larger deals, and many companies combine both.
Example
A company offers project management software to construction firms for $40 per user per month, billed annually. Customers sign in through a browser, the company hosts and updates the software, and its revenue depends on firms renewing each year and adding users as their projects grow.
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