111–120 of 126 posts
This is complete nonsense, right? SaaS prices have nothing to do with input costs --- prices are plucked out the air (or from somewhere else...) based on some guess about what the market might bear vs aspirations for volume. Then, once the smoke clears, you jack the price up a bit in order to buy a new boat.
Because SaaS business models were built around operating at a loss in order to gain a monopoly and rent seek?
Many (most? Except maybe asana) public SaaS companies have 20% cost of revenue AFAIK
Earlier quoted context omitted.
But thats within one cell... But data will be stored in more than one cell to deal with scheduled and unscheduled downtime of the cell...
You have pay more for that
https://cloud.google.com/storage/docs/availability-durabilit...
Are you thinking of Persistent Disk (PD) and Replicated PD?
(I work on storage at Google.)
Because SaaS business models were built around operating at a loss in order to gain a monopoly and rent seek?
Loss? Many (most? Except maybe asana) public SaaS companies have 20% cost of revenue AFAIK
Source: https://blossomstreetventures.medium.com/q1-saas-metrics-dat...
We just told 2 big vendors where to go as a result of not just 20% rises, but one was an eye gouging 600%. We spent 2 manic weeks scrambling to implement alternatives but we have now done so and in the process saved ourselves several hundred thousand bucks and got arguably better systems as a result. Lean doesn’t have to mean poor.
They did this to me and I was shocked and disappointed, especially since their entire business model is to become the plumbing between your different systems. Seems predatory.
Earlier quoted context omitted.
Loss? Many (most? Except maybe asana) public SaaS companies have 20% cost of revenue AFAIK
Yes loss. 70% of the SaaS companies that IPO'd in the past five years are loosing money. The median operating margin is -21%. Source: https://blossomstreetventures.medium.com/q1-saas-metrics-dat...
Because SaaS business models were built around operating at a loss in order to gain a monopoly and rent seek?
Loss? Many (most? Except maybe asana) public SaaS companies have 20% cost of revenue AFAIK
I guess they are betting that R&D costs are fixed(ish) or at least will grow slower than revenue. Which of course doesn’t always work, especially over the last few years where free money resulted in massive bloat.
Earlier quoted context omitted.
> They’re even more locked into cloud now than it seems because not only have they shut down their in house ops but they’ve lost the skills and the work force. On the other hand now they are free to concentrate their labor on their core business and competencies. Why on earth would they want to tie up payroll and benefits on people running the company email?
It's a fair point, but here's a counter. Large software companies still hire their own accountants and lawyers and HR correct? And this is largely expected and understood to be a requirement. Why should IT be any different? Once you hit a certain size, it doesn't make a whole lot of sense to say something like "let's outsource our IT, they are distracting me from focusing on our core competencies". You should have a…
Some might be testing price elasticity with the changing market. This could be temporary.
I think that transition costs are high and they’ll find that some customers will stick with them even with higher prices.