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Another problem is that there no way of safeguarding that your SaaS provider won't raise your prices overnight, and migration also costs money and time

by type0 3y ago

fragmede 3y ago
Multi-year business contracts have lengthy renewal negotiations. Your saas provider can change rates, but it won't be overnight if you're a business.
- figassis 3y ago
  US VC backed startup colored glasses: multiyear SaaS contracts. Some people are bootstrapping. And I thought the appeal of SaaS is pay for what you use, and pay as you grow? So now the selling point is buy in bulk?
  - otteromkram 3y ago
    The selling point is to buy what works for you. If you know what size user base you have and can estimate usage, buying ahead of time makes sense. If you're smaller or can't afford a multi-year contract or don't want to get locked into one service, then "pay as you go" makes sense.
    - figassis 3y ago
      That's my point. Capital rich startups are not the subject of this comment. The reason Placemark is failing is not because it could not get one FAANG contract, it's because many small startups/smbs/single person businesses could not pay $20 for it. The comment was to give one reason I believe many SaaS startups today fail to grow, it's because the $20 is a fee for the small guy (otherwise it would be $500 or a contact us button), but the small guy has 100 other $20 subscriptions x employees, so another $20 is more like $1500+20 a month, and maybe the reason they can only afford 2 employees vs 3.
dustingetz 3y ago
people renegotiate compensation too; knowledge transfer is measured in months to years of salary Mythical Man Month lays it out crystal clear that you want the smallest team possible, levered up to the hilt and retained long term, because communication overhead between people and teams is the dominant cost factor in orgs of all sizes. The optimal team size is two, given sufficient leverage. SaaS is the leverage.

Another problem is that there no way of safeguarding that your SaaS provider won't raise your prices overnight, and migration also costs money and time

by type0 3y ago

Another problem is that there no way of safeguarding that your SaaS provider won't raise your prices overnight, and migration also costs money and time

fragmede 3y ago

Multi-year business contracts have lengthy renewal negotiations. Your saas provider can change rates, but it won't be overnight if you're a business.

figassis 3y ago
US VC backed startup colored glasses: multiyear SaaS contracts. Some people are bootstrapping. And I thought the appeal of SaaS is pay for what you use, and pay as you grow? So now the selling point is buy in bulk?
- otteromkram 3y ago
  The selling point is to buy what works for you. If you know what size user base you have and can estimate usage, buying ahead of time makes sense. If you're smaller or can't afford a multi-year contract or don't want to get locked into one service, then "pay as you go" makes sense.
  - figassis 3y ago
    That's my point. Capital rich startups are not the subject of this comment. The reason Placemark is failing is not because it could not get one FAANG contract, it's because many small startups/smbs/single person businesses could not pay $20 for it. The comment was to give one reason I believe many SaaS startups today fail to grow, it's because the $20 is a fee for the small guy (otherwise it would be $500 or a contact us button), but the small guy has 100 other $20 subscriptions x employees, so another $20 is more like $1500+20 a month, and maybe the reason they can only afford 2 employees vs 3.

dustingetz 3y ago

people renegotiate compensation too; knowledge transfer is measured in months to years of salary Mythical Man Month lays it out crystal clear that you want the smallest team possible, levered up to the hilt and retained long term, because communication overhead between people and teams is the dominant cost factor in orgs of all sizes. The optimal team size is two, given sufficient leverage. SaaS is the leverage.