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The problem is one size company fits all pricing. Small business who can benefit the most from SAAS (and have the least regulatory/bureaucratic resistance) can
by rrggrr 12y ago
The problem is one size company fits all pricing. Small business who can benefit the most from SAAS (and have the least regulatory/bureaucratic resistance) can't justify enterprise or middle-market pricing. And the valuation/exit strategy for most SAAS offerings is quantity of users, not profitability - like it or not. I predict either Chart.io changes pricing or its market share is eroded by FOSS and cheaper alternatives like: http://idl.cs.washington.edu/projects/lyra/ http://idl.cs.washington.edu/projects/lyra/
- rgrieselhuber 12y ago> And the valuation/exit strategy for most SAAS offerings is quantity of users, not profitability - like it or not. That's not true at all. SaaS companies are valued on recurring revenue, lifetime value, retention and future cash flow. Number of users is almost irrelevant as long as those metrics are moving up and to the right to a healthy degree. Chart.io has already changed their pricing once and I share your prediction that they will change it again: to charge even more. And grow further as a result. SMBs are a tough market for SaaS companies with a product that has any complexity whatsoever, both in terms of usage and distribution.
- rrggrr 12y agoLets meet again in a year. SAAS is a falling knife. I bet 20 Satoshi on it.
- rgrieselhuber 12y agoBeen at it for 4 years already and SaaS wasn't always this hot. Edit: what exactly are you wagering on?