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I was responsible for IT in a hypergrowth scale-up and I don’t like this article, it misrepresents the problem. The problem is, when you are big enough to set u
by ivan_gammel 2y ago
I was responsible for IT in a hypergrowth scale-up and I don’t like this article, it misrepresents the problem. The problem is, when you are big enough to set up SSO like Okta, you have to upgrade nearly all of your subscriptions in a short time to make use of it, suddenly resulting in a huge increase in the budget. So, let’s say the business goes from X to 2X in revenue and from X to almost 2X in staff (let’s assume there’s some small increase in productivity over time). In some incredible logical twist every SaaS provider thinks that 2X increase in price is affordable, despite that the company is still burning money and the enterprise features aren’t really needed yet. 2X budget isn’t approved by CFO, cost-cutting exercise starts and price increase is matched by significant reduction in number of licenses. Did it worth it? Not sure. Volume-based pricing complimented by feature add-ons would do a good job too.
- danenania 2y agoLet’s not forget that the whole reason your company needs to upgrade all its subscriptions for SSO is so it can get a soc2 and offer its own high-priced enterprise plan (which is probably gated by SSO).
- ivan_gammel 2y agoDo you realize there exist other types of businesses?