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Historically enterprise SaaS with strong product/market fit has been (comparatively) safe. Companies tend to get hit in order of consumer > SMB > mid-market > e
by hackitup7 4y ago
Historically enterprise SaaS with strong product/market fit has been (comparatively) safe. Companies tend to get hit in order of consumer > SMB > mid-market > enterprise. The above does not apply if you're a high burn organization that overhired, those jobs are at risk in every industry except maybe the government.
(Of course nowhere is entirely safe, even in good times)
- jameshart 4y agoIn a downturn, enterprise SaaS vendors have to cut back on development and hold on to the customers they have. They aren’t winning new big contracts, and losing a few big customers could be fatal. And when you cut back on roadmap on a product like that, consolidation starts looking sensible. That’s when you get bought out by Oracle or ADP or someone.
- hackitup7 4y agoYeah I mean bad things can happen to anyone, but relatively speaking enterprise tends to be safer all else being equal. A great consumer company is still probably safer than a decent enterprise SaaS company. "losing a few big customers could be fatal" For sure, but there's also a long history of enterprise companies weathering this just find (eg Twilio famously churning Uber). There often is just less pullback than one would think as well, it's typical to see 3+ year contracts in enterprise.