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It feels like these companies haven't found the right value metric to price along. Ideally it should align with the value the customer receives.
by Aulig 4y ago
It feels like these companies haven't found the right value metric to price along. Ideally it should align with the value the customer receives.
- altdataseller 4y agoBut that's almost impossible to measure by Snowflake. How would they know how much more revenue you earned because you use Snowflake?
- Rastonbury 4y agoI don't think their customers could quantify it if they tried (and i'm not implying Snowflake doesn't give value, it probably does but how does a company attribute it)
- polskibus 4y agoOnly competition can enforce this. The article ideally demonstrates the problems with monopolies and vendor lock-in.
- danielmarkbruce 4y agoSnowflake is nowhere near a monopoly, and plenty of customers have moved from other vendors (Teradata, Netezza, etc) to Snowflake - showing that vendor lock-in is not as strong as it might seem.
- polskibus 4y agoIf that's the case, then why aren't Snowlake and Google targeting query optimiziation with higher priority to lower end-user costs? There's no incentive in the market for them to do so - once you switch to them, you'll eat up the cost of quirks and learn how to avoid them the hard way.
- danielmarkbruce 4y agoThey are. See other comments about snowflake leaving $97m on the table recently, doing exactly that.
- carimura 4y agoClose. Product pricing is based on a variety of perceived factors (value, cost of change, risk of loss, etc.)