Lockin.
It's the basic economics of SaaS, endoflife was just too soon.
Why SaaS prices are still going up when companies are spending less
81–90 of 126 posts
Re: Why SaaS prices are still going up when companies are spending less
#82> Software price hikes are driven in part by inflation. The cost of living has surged post-pandemic in most economies. Higher electricity costs, chip shortages, and rising wages all increase the cost of doing business. Not that there hasn't been inflation, but prices have gone up much more in the last year than inflation itself has. Inflation is 3.2%, lower than the 100-year average in the U.S. It was higher a year a…
It’s not caused by general inflation, it’s a response to the attempts to mitigate inflation.
Increased interest rates have meant an end to cheap credit and put a damper on stock prices.
Companies are trying to shore up their valuation by signalling to investors that they are driving towards profitability rather than debt-driven growth. This means raising the price of their product and cutting costs (ie layoffs).
Re: Why SaaS prices are still going up when companies are spending less
#83Earlier quoted context omitted.
Thanks for this insight. It’s a perspective I don’t have. Did you build the site? Is it performing as expected? I know “nobody got fired for choosing AWS” but the real value seems to be in burst loads. If you have predictable, stable workloads I can see on prem or hybrid making more sense.
So long as stable also means "unchanging" (in the sense of no new machines are being deployed). Our biggest win from AWS was never having to think about DDoS; our second biggest win was never having to wait for our Ops team (who was very good overall) to have the discussions about how to deploy new hardware, new storage, etc. I get annoyed when a new EC2 instance takes 2 minutes to launch now. That time used to be no…
Yes the benefit of the cloud is the ability to change deployed capacity quickly.
Re: Why SaaS prices are still going up when companies are spending less
#84Re: Why SaaS prices are still going up when companies are spending less
#85> Software price hikes are driven in part by inflation. The cost of living has surged post-pandemic in most economies. Higher electricity costs, chip shortages, and rising wages all increase the cost of doing business. Not that there hasn't been inflation, but prices have gone up much more in the last year than inflation itself has. Inflation is 3.2%, lower than the 100-year average in the U.S. It was higher a year a…
If the published inflation rate is significantly less than the increase in price of a wide variety of goods, then doesn’t that indicate that the inflation rate isn’t being calculated correctly? My understanding is the inflation rate should generally reflect how much more expensive things are getting each year
The ever-more-tiresome issue is that the textbook, accepted-by-rote relationship of interest rates to inflation hasn't held up. The Fed has raised, raised, raised rates for what, a couple of years now? To negligible effect.
That's because nobody is calling the administration to task for allowing the REAL cause of recent spiraling costs: monopoly and oligopoly. This is straight-up corporate profiteering and price-gouging. It's infuriating to see the dereliction of the press's duty in its failure to demand answers, and to regurgitate embarrassing circular "logic" by saying "higher prices are driving inflation!"
In other news: The heat is driving up temperatures around the world.
Re: Why SaaS prices are still going up when companies are spending less
#86> Software price hikes are driven in part by inflation. The cost of living has surged post-pandemic in most economies. Higher electricity costs, chip shortages, and rising wages all increase the cost of doing business. Not that there hasn't been inflation, but prices have gone up much more in the last year than inflation itself has. Inflation is 3.2%, lower than the 100-year average in the U.S. It was higher a year a…
If the published inflation rate is significantly less than the increase in price of a wide variety of goods, then doesn’t that indicate that the inflation rate isn’t being calculated correctly? My understanding is the inflation rate should generally reflect how much more expensive things are getting each year
It's typical that prices change by different amounts in different areas. For example, if you go to https://www.bls.gov/cpi/ you'll see that the overall +3.2% for June is broken up into +4.9% for food, -12.5% for energy, and +4.7% for everything else. The more finely you slice, the more often you'll see something moving very differently from the rest of the economy.
Re: Why SaaS prices are still going up when companies are spending less
#87Customers have become hostages and captors have more chips to play with.
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Re: Why SaaS prices are still going up when companies are spending less
#88> Software price hikes are driven in part by inflation. The cost of living has surged post-pandemic in most economies. Higher electricity costs, chip shortages, and rising wages all increase the cost of doing business. Not that there hasn't been inflation, but prices have gone up much more in the last year than inflation itself has. Inflation is 3.2%, lower than the 100-year average in the U.S. It was higher a year a…
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Re: Why SaaS prices are still going up when companies are spending less
#89Companies are going through the "reduce our cloud bill NOW" exercise. They have to cut the unnecessary, wasteful infrastructure and raise prices. So, after all these years of hearing "who cares about performance and cost - just buy more engineers, CPU, and memory", gravity is once again being the bitch that it is.
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Re: Why SaaS prices are still going up when companies are spending less
#90Another reason why I never used SaaS.