They're doing the right thing. It's a killer business but this isn't 2020 ZIRP. If a company isn't profitable, it's not going to inspire trust, and this will hinder its growth and cost it deals. In addition to the tough VC market. At 39$/m, PlanetScale is a no brainer. Anyone with any clue will use this platform to build, and with these changes there's no doubt as to whether they will be there in 2y or not.
PlanetScale performs layoff and prioritizes profitability
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Re: PlanetScale performs layoff and prioritizes profitability
#12I'm curious if this was after a failed funding attempt. I think we're going to see a lot more VC backed companies prioritizing profitability. I think startups should use seed rounds to become profitable. It's the only way to secure your future. You can be profitable and grow fast. See Notion and Linear.
I can confirm this is not because of a failed funding attempt. This is the most responsible thing we can do as an infrastructure provider.
There is no shame in charging for a product and changing strategy. Best wishes for success.
Re: PlanetScale performs layoff and prioritizes profitability
#13"Removing sales and marketing" - That seems like an interesting decision unless those positions only existed to grow the free hobby tier.
Re: PlanetScale performs layoff and prioritizes profitability
#14Most of the "free" things out there could only be sustained by the near-free money that companies could get in the recent low interest rate environment. Many companies ultimately had unrealistic business models, creating massive distortions in the marketplace and hurting companies and people who were trying to create actual, long term value.
Re: PlanetScale performs layoff and prioritizes profitability
#15Its interesting the contrast between HN and X [0] as far as the sentiment goes on this change. On HN seems mainly in favor of this change while on X everyone is mainly against it.
Personally, I'm glad I haven't built something on PS Hobby that I have to migrate but I do think its fair to charge for your product.
[0] https://twitter.com/PlanetScale/status/1765438197981708684
Re: PlanetScale performs layoff and prioritizes profitability
#16Its interesting the contrast between HN and X [0] as far as the sentiment goes on this change. On HN seems mainly in favor of this change while on X everyone is mainly against it. Personally, I'm glad I haven't built something on PS Hobby that I have to migrate but I do think its fair to charge for your product. [0] https://twitter.com/PlanetScale/status/1765438197981708684
The people against this on X are probably not building a business. They wouldn't be giving PlanetScale money anytime soon.
Re: PlanetScale performs layoff and prioritizes profitability
#17Tough choices. o7 to the laid off.
Going full enterprise by shutting down hobby plans while laying off primarily sales and marketing.
Re: PlanetScale performs layoff and prioritizes profitability
#18Well written, Sam - I admire the clear communication and transparent reasoning laid out in the post. I'm sure this decision took endless reflection and consideration; I'm happy for you that the announcement seems well received so far.
#planetscale_forever
Re: PlanetScale performs layoff and prioritizes profitability
#19Tough decisions for a tough context. Planetscale remains the best tool in my toolbox when I'm launching online systems. Hang in there guys. You're doing valuable work. Enabling developers to help the world is a great way to rise a tide for everyone.
Re: PlanetScale performs layoff and prioritizes profitability
#20Firing sales and marketing and getting rid of the free tier. How are they planning to find new customers?