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I see this as an upcoming trend in all SaaS. Across the industry, the cost of resources is headed towards zero. Blame it on Amazon and Google who are making on
by nzoschke 10y ago
I see this as an upcoming trend in all SaaS. Across the industry, the cost of resources is headed towards zero.
Blame it on Amazon and Google who are making online compute, memory and storage ridiculously inexpensive if you know how to use it right.
So SaaS companies should and will have to price on a different dimension.
I think:
Charge to cover the resource prices. But if your resources are small amounts of storage for code, round down to zero.
Charge per user. It's simple and predictable and a good proxy for budget.
Tier around features.
Sell a totally private on-prem version. Companies will pay big bucks if they need your product features and compliance.
So yeah, basically exactly what GitLab is doing. They really are doing a great job at trying to build an open source business.
- sytse 10y agoThanks Noah