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If you save $500k this year by optimizing some pattern or behavior (eg infrastructure) then why wouldn't that $500k also be saved the next year? You're right if
by Brystephor 4y ago
If you save $500k this year by optimizing some pattern or behavior (eg infrastructure) then why wouldn't that $500k also be saved the next year? You're right if it's a one-time cut (eg no free snacks this year) but most savings are going to be on things that happen more than once.
- pgodzin 4y agoAgree on things like infrastructure optimization. Most significant savings happen on people costs though, and layoffs/hiring freezes tend to not last forever, and also have impacts on future growth as well. Compared to the same amount of revenue offering, most top SaaS companies have >100% net dollar retention, which means that their existing contracts tend to grow year-over-year from usage/upsells, so the long-term value of that $1m in revenue increases over time.