Price has little to do with cost. Price should be the maximum the market can afford while still beating ones competition.
True and yet companies will cite costs when they raise their prices, so ignore that marketing BS too.
Why SaaS prices are still going up when companies are spending less
11–20 of 126 posts
Re: Why SaaS prices are still going up when companies are spending less
#12Greed.
Ah greed.
A shame companies started being greedy in 2023.
Re: Why SaaS prices are still going up when companies are spending less
#13It would be interesting to see what the corresponding figures are like for on-prem, although they would be much more difficult to calculate and would vary wildly between companies. The only thing that really stood out to me was the Google storage price increase, which seems rather large, as in way out of line in comparison to our 2023 spend and 2024 budgeting. It would also be nice to see what exactly is meant by Saa…
I did a detailed price cost calculation of onprem vs AWS as I worked at a MSP. Our cost of compute and storage including DC construction over 10y was about half the cost of AWS.
We also used cheap supermicro and had no service contracts or warranties we had on site staff. Their salaries were included.
Small DC 2mw.
Re: Why SaaS prices are still going up when companies are spending less
#14Earlier quoted context omitted.
Storage prices depend on the reliability you want. Someone like Google cannot ever lose data of any customer. So if you pay for 1GB of storage, they probably actually store 5GB of data or more for you. It will be redundantly stored within the datacenter across different racks, but also stored (also redundantly) in different datacenters in case of flood/fire. Theres probably a copy on tape incase of a catastrophic sof…
> So if you pay for 1GB of storage, they probably actually store 5GB of data or more for you The actual factor is most likely around 1.4-1.5x and for sure can’t be any more than 2.2x in this day and age. Dumbest possible implementation will be “only” 3x so no it’s nowhere close to 5gb Edit: looks like it’s public so i can actually tell you that google uses RS 3,2 which gives 1.5 replication factor. When i was there a…
Presumably Google also keeps backups, though, right?
Re: Why SaaS prices are still going up when companies are spending less
#15Price has little to do with cost. Price should be the maximum the market can afford while still beating ones competition.
Why? What do you mean by "the market can afford"?
Re: Why SaaS prices are still going up when companies are spending less
#16Um, capitalism?
Re: Why SaaS prices are still going up when companies are spending less
#17[deleted]
Re: Why SaaS prices are still going up when companies are spending less
#18Price has little to do with cost. Price should be the maximum the market can afford while still beating ones competition.
True and yet companies will cite costs when they raise their prices, so ignore that marketing BS too.
Costs set a minimum price, as below that it is not worth providing the service. They don't lead to a maximum though.
Re: Why SaaS prices are still going up when companies are spending less
#19For the same reason they are spending less....to stop the red
Re: Why SaaS prices are still going up when companies are spending less
#20Earlier quoted context omitted.
> So if you pay for 1GB of storage, they probably actually store 5GB of data or more for you The actual factor is most likely around 1.4-1.5x and for sure can’t be any more than 2.2x in this day and age. Dumbest possible implementation will be “only” 3x so no it’s nowhere close to 5gb Edit: looks like it’s public so i can actually tell you that google uses RS 3,2 which gives 1.5 replication factor. When i was there a…
Presumably Google also keeps backups, though, right?
Yes they also store to tape