2 ms·
When I was working for Opsware, after it had just become a software business, pivoting from Loudcloud, 90%+ of our revenue came from a single, very, very large
by ghshephard 14y ago
When I was working for Opsware, after it had just become a software business, pivoting from Loudcloud, 90%+ of our revenue came from a single, very, very large customer. (And, for the first 6-9 months, they were 100% of our revenue).
At every several all hands, I would ask our CEO, "What happens if they decide not to pay us?" - and his answer, at the time, was, "They will pay us" - basically we were betting the company on it - but at least we all knew that.
There is a reason why corporations are required to identify if a significant amount of their revenue from a single customer.
If you are getting all of your revenue from a single source, the question isn't what to do "if" that revenue disappears, it's what to do when that revenue disappears.
- pyoung 14y agoI was a bit disturbed that he seemed so surprised by this. It seems so obvious. I work in consulting and we have a very diverse set of clients, which theoretically provides some protection against the actions of any one client. Even then we put a lot of effort in to maintaining good relationships with our larger clients, as loosing one of them is the difference between a really good year and a really bad year.