For initial users we believe selling individual user license are better until we know issues that we will have to deal with if we go SaaS. Should we go SaaS? or Sell Individual License? Can someone list hosting related problems (bandwidth, outage etc.) and how to tackle with them while selling SaaS?
I am a founder of a Startup about to launch our first product (mobile app). We looked at this very question. In the end we looked at the impact the decision would have on our company's valuation. Based on my initial, informal discussions with funders in my area (Canadian Atlantic Region) with single point of sale revenue a healthy technical start up is worth approximately 4-6X annual revenue whereas the same company with a subscription or SAAS model is worth 10x and up.