4 ms·
Unfortunately it's basic Darwinism. At first there were a mix of companies that did upfront licenses and service based. But over time, the service based compani
by Fordec 6y ago
Unfortunately it's basic Darwinism. At first there were a mix of companies that did upfront licenses and service based. But over time, the service based companies had more consistent revenue, lock in and faster customer turn around. Then, with their competitive advantages, they either ran rings around the competitors that didn't or bought them with the bigger profits.
These days if you go against that grain, unless you are one of those people who are destined to be a household name due to their wild success and domination of anyone doing SaaS right now, you are accepting that a competitor is going to beat you. I don't want to sell a SaaS to my customers. I don't. But my desire to not be eaten by the competition is greater and the game is the game until the meta changes. But boy do I eagerly await for the day the meta changes so we can start making better products for people.
But a system that doesn't rely on VCs and their metrics like CAC, CAGR etc. is a prerequisite which demand consistent quarterly or monthly results that indicate hockey stick trajectories, not instant bounces one month of the year on the back of a flat fee. That is the metrics most are playing to get access to capital. To change this we need a post VC economics. But I don't see where that going to come from.
- abhinav22 6y agoThanks - great to have the perspective on the other side, you have to do what you have to do to survive and as you said, if you don’t play the SaaS game, then you are at significantly more risk because your competitors will.