Some food for thought in here. But I'm not sure it's necessarily a problem with SaaS businesses. His conclusions depend on the arbitrary numbers in the exampl

Some food for thought in here. But I'm not sure it's necessarily a problem with SaaS businesses. His conclusions depend on the arbitrary numbers in the example analysis. It seems to me that his criticism is with the pricing rather than the actual model. If you could have charged $100k up front plus 20% maintenance fees, and are only charging $5k per month, your pricing probably has issues. You could also charge setup fees for customers who need high touch introduction / initial setup to help recoup those costs. And the sliding pricing scale (eg Salesforce, where you pay more as you have more success with their software) can help you grow customer revenue per customer, over time. Still, some good points to think about. I just don't think it dooms the SaaS space to crash. It just depends on the value you offer, and how you structure your pricing.