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PlanetScale performs layoff and prioritizes profitability

planetscale.com

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Re: PlanetScale performs layoff and prioritizes profitability

#31

"Removing sales and marketing" - That seems like an interesting decision unless those positions only existed to grow the free hobby tier.

Yea this seems like a gift for https://neon.tech/, https://turso.tech/ and https://developers.cloudflare.com/d1/.

Planetscale is definitely popular and they get a lot of free advertisement from tech influencers (may change without the free tier) but most people I know in enterprise haven't heard of it.

Re: PlanetScale performs layoff and prioritizes profitability

#33
post #31

"Removing sales and marketing" - That seems like an interesting decision unless those positions only existed to grow the free hobby tier.

Yea this seems like a gift for https://neon.tech/ , https://turso.tech/ and https://developers.cloudflare.com/d1/ . Planetscale is definitely popular and they get a lot of free advertisement from tech influencers (may change without the free tier) but most people I know in enterprise haven't heard of it.

When is a gift not a gift?

Re: PlanetScale performs layoff and prioritizes profitability

#34
post #6

This seems like a smart move. I know some will be frustrated with losing a free tier. But ultimately businesses need to make money and charging for it is part of that.

> ultimately businesses need to make money and charging for it is part of that. This is a mentality shift from the investor side. You would be shot down if you said we're focusing on profits/revenue rather than growth from 2010 to 2021. Now it's shifted from growth to profitability. A bunch of companies were burning money rather than making it for a decade.

Welcome to the world of European VC's where it has always been like that!

Re: PlanetScale performs layoff and prioritizes profitability

#35

This seems like a smart move. I know some will be frustrated with losing a free tier. But ultimately businesses need to make money and charging for it is part of that.

When you are a product that people build businesses on top of and start by burning money to grow as fast as possible and then switch to caring about profitability with a months notice to your customers that's a shitty thing to do.

Re: PlanetScale performs layoff and prioritizes profitability

#36
I think this is very common playbook those days - Overdeliver to your customers whenever with Free Tier, Everything Open Source, Extremely Low Prices to get market share... when do a switch and focus on profitability.

With killing free tier I wonder if it just was not generating a good conversion to paid users or is it killing a golden goose to get one time customer injection from folks choosing to move to paid tier

Re: PlanetScale performs layoff and prioritizes profitability

#37
PlanetScale has been two products in one. It was born at Youtube as MySQL sharding solution for massive scale. In the last few years though it was adding features usable for developers on the small scale too, who do not need sharding but looking for database with better developer experience than MySQL.

I wonder if this change signals it is "Database for Large amount of Data" is what drives most of business. Companies who have 10TB+ database size, where Sharding is of real value will not think twice about paying $40 to do initial testing on paid account.

Re: PlanetScale performs layoff and prioritizes profitability

#38
post #31

Earlier quoted context omitted.

Yea this seems like a gift for https://neon.tech/ , https://turso.tech/ and https://developers.cloudflare.com/d1/ . Planetscale is definitely popular and they get a lot of free advertisement from tech influencers (may change without the free tier) but most people I know in enterprise haven't heard of it.

When is a gift not a gift?

This is a particularly clever post.

For those that don’t have experience running companies with permissive free tiers, free tiers often act as a honeypot for a certain category of users that (1) don’t and will never pay for your product, (2) complain loudly and often and (3) eat up your support time.

This category of user is equally toxic to any competitor’s platform. The best B2B companies paywall early and set the bar high.

Re: PlanetScale performs layoff and prioritizes profitability

#39

Earlier quoted context omitted.

I don’t fall out with the change at all, but being given 1 month to migrate doesn’t seem well thought out, there will definitely be some avoidable negative sentiment related to that. These are potential paying users not freeloaders to evict.

This is the only real problem I have with how they handled the situation. But it's a big problem. Whether or not these folks on free plans are ever going to convert to paid, they trusted PlanetScale to serve as a critical building block for their project/business. I think the least they could do is ease the transition by offering them a reasonable amount of time to offboard. I personally would never trust critical in…

The mental model that you get critical infra for free is wrong.
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