We use cookies to enhance site navigation, analyze site usage and show personalized advertising. See our Privacy Policy. California residents - see CCPA Privacy Policy Supplemental for opt-out options.

This content is currently only available to TSIA members.

If you believe you are seeing this message in error,
please let us know.

Research Report

The C-Suite Playbook for Profitable SaaS and XaaS

Profitability has become paramount for SaaS companies. Now is the time to steer your SaaS/XaaS business model to a sustainable posture.

The path to profitability for XaaS providers will not be easy, but it is doable. And there are real world examples of profitable XaaS companies following the principles we outline here.

In the paper, "The State of the Technology Industry 2023: The Year of Profitable SaaS" TSIA asserts that there are three levers XaaS companies will need to pull to become profitable:

  1. Monetize services: Charge customers for aspects of professional services, customer success, education, and premium technical support.
  2. Migrate commercials: Move low-complexity commercial transactions (e.g., simple renewals) from the sales department to lower cost channels.
  3. Modify the growth engines: Move beyond leveraging sales representatives and invest in next-generation capabilities to grow revenue.

The plays outlined in this paper will fall under one of these three main levers. They will be presented from the easiest to run (in terms of time and treasure) to the most challenging:

  • Monetizing Professional Services
  • Monetizing Premium Technical Support
  • Monetizing Customer Success and Eduation Services
  • Migrating Renewals from Account Executives
  • Assigning Expansion Targets to Customer Success
  • Increasing the Account Ratio for Sales
  • Optimizing Service Operations
  • Offer Rationalization
  • Customer-Led Growth
  • Product-Led Growth
  • Channel-Led Growth
  • Establishing Managed Offers



Authored By:

Thomas Lah

Executive Director and Executive Vice President, TSIA

Publish Date: April 19, 2023

TSIA is well worth the investment. This is the one place where you can come and get a fusion of ideas that you can then marry up to the goals and objectives of your organization and boil that down into several actionable plans that you can implement over the next 6 months to a year.

Peg Rodarmel, SVP, Subscription Services, Infor

Experience Our Community

Our thriving community of 40,000 technology and services leaders rely on TSIA insights every day.