Live data from Hacker News

SaaS Needs a Single Point of Purchase

landshark.io

121–130 of 172 posts

Re: SaaS Needs a Single Point of Purchase

#121

Actually, AWS Marketplace is trying to do exactly this.

I know. And given how hostile Amazon can be to sellers, I would love to see them fail to become the standard.

Amazon caters towards the buyers for sure. That makes them a fair-sized favorite to win. Golden rule: "He who has the gold, makes the rules."

Re: SaaS Needs a Single Point of Purchase

#123
post #108

Earlier quoted context omitted.

As someone who works in the enterprise space, I fully agree with you. In every enterprise I've ever worked at, the purchasing process is a nightmare - it invariably takes months at best to purchase anything, and the bureaucracy, meetings and wasted time will cost you your soul. When you add up all the wasted man-hours it takes to purchase a $100 app, it will easily run to an order of magnitude more - at best . Once y…

Unfortunately legal concerns about data privacy are pushing enterprises towards MORE of this stuff, not less.

Absolutely. And it is strictly security theater. We're delusional to think that checking the boxes on these arbitrary lists is making us "more secure." It's very frustrating to have a role in this game and find yourself completely unable to combat the bureaucracy.

Re: SaaS Needs a Single Point of Purchase

#124

Earlier quoted context omitted.

I agree. Incredibly though, the same organisations will spend hundreds of man-hours quibbling over whether a dev team really needs a $20 app. Sometimes I really hate working for large companies!

Me: "John wants to use this $20 app" Manager: "Ok, schedule a meeting with the 3 of us and my boss to determine if it makes sense" Me: "The 4 of us talking about this for a half hour will cost the company $375." Manager: "..." [cut to inside the $375 meeting] Manager's Manager: "Things are tight, we just don't have the budget this year."

If that is $20/year app, even if they finally approve it, expect to have this debate over and over again each year whenever the management gets another $20 invoice.

Then there is another piece of software that costs $200,000 but that's okay because someone more important than John decided they need it. Probably some website where you can upload PowerPoint presentations.

Re: SaaS Needs a Single Point of Purchase

#125
The blog post describes only the billing advantages of the "single vendor" approach like AWS or Microsoft. But the other half of it is much more important, and that's the security/compliance aspect. You know that anything you buy from AWS or Microsoft is engineered to a common set of security / privacy standards, and that whatever those standards are have been audited by governmental customers etc. Of course they're not perfect, but there is a definite increased security risk in having your corporate data sit inside 20 different companies vs. 1.

Re: SaaS Needs a Single Point of Purchase

#126
post #101
post #84

Earlier quoted context omitted.

Yeah, telling your customers that they should modernize is a great way to let someone else sell to them.

OTOH, telling an entire industry to reorganize to accommodate your internal processes is also a fools errand. Just imagine the dilemma this puts on the growth team: "Hmm, spend 1000x effort to land this one customer or fix an obscure bug in the signup page and get an extra 1000 self-serve customers this month. Golly, I don't know..."

The industry has the choice of changing or ever racing ahead of AWS, who can take their potential customers merely by already being in the purchasing database.

Re: SaaS Needs a Single Point of Purchase

#127
post #19
post #3

This is a pretty established distribution model often called "bottom up" approach, and it's particularly relevant to enterprise sales where you allow the users to start using the software without friction [something that was proper to "consumer" applications] and then allow management to pay for that software, or users to pull their corporate credit card and buy what their budget allows. One turn-off for us for machi…

If it's an important service it's not a big deal at all to speak to someone, and frankly, even though they do this for price discrimination, the fact is they can incredibly helpful and save you a boat load of time and effort trying to understand the product in many cases. Yes, some things should 'just be self serve' but many things, not so much.

Well the job they have to do before I waste my time scheduling a meeting with your sales dude is 1) convince me that your product is valuable and 2) convince me that the ballpark pricing is workable for me.

You can really only know a car by test driving it. But that doesn't meant that Toyota doesn't publish photos of its interiors and asks you to schedule a test drive before finding out the price. I can quickly find out what cars might be suitable for my needs given their properties and their pricing, and THEN commit my time to test driving the best candidates. If you just say "Believe me. This is the best car. People are saying what a great car this is. This is a car that you'll come in and you'll test drive, and you'll say that you've never even seen a car this good." Well I'm just going to ignore you.

Re: SaaS Needs a Single Point of Purchase

#128
So do news sites, so do streaming services, so do (in my opinion) charities. The manual overhead of setting up (and then managing) a bunch of micro-subscriptions is a significant source of friction when it comes to adoption. It raises the barrier of "is it worth dealing with?". Payment providers like PayPal and Apple Pay do a little bit to help you centralize things, but I think there's a ton of improvement left to be made in this area.

Re: SaaS Needs a Single Point of Purchase

#129
The cloud providers are trying to solve this problem - more and more of our customers are purchasing through the marketplace. It allows them to drive down spend commitments to AWS, GCP, etc - it's a pretty good experience all around and enables usage based pricing + easy collections. Which is something all startups hate dealing with.

Re: SaaS Needs a Single Point of Purchase

#130
post #83

Sounds more like certain purchasing departments need to modernize, not the other way around. IMHO. Not being able to use the right tools for the job, because some bean counters don't like complexity, is silly and shortsighted.

Our app costs $18 per month and one of our customers said she could buy only using a PO. So, I told her to use it for free till she finds a way to pay by card. We are likely to gain more by having an enthusiastic user, rather than losing her for the stupid purchasing department.
Post reply on HN