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> Prices should not go up for hosting and development. Prices should go down per user as there are fixed costs. Same with development. That's the naive in theo
by notyourwork 4y ago
> Prices should not go up for hosting and development. Prices should go down per user as there are fixed costs. Same with development.
That's the naive in theory world. In practice, it is not always the case that economies of scale lend to reduced hosting/infra costs. They can in fact balloon, especially for a small population or a small niche use case.
- prepend 4y agoI think it is always the case that it leads to reduced hosting/infra costs. But that doesn’t mean it leads to lower prices as these cost savings aren’t passed on to users. A properly designed saas should have a non-linear cost per user so more users means lower marginal costs. If not, then something is amiss or it’s not a digital product. The “increased costs per user” is just marketing PR blargh.