Engineering Glossary

What is The SaaS Tax?

The compounding financial bleed of per-seat software licensing.

Definition

The hidden, compounding financial penalty incurred when growing companies pay for per-user software licenses (OpEx) instead of owning custom-built intellectual property (CapEx). As headcount scales, the SaaS Tax destroys EBITDA.

Key Benefits

Financial clarity
EBITDA recovery
IP generation