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Ask HN: Are SaaS Businesses Commoditized?

12 pointsby advaitruiaover 1 year ago
There are so many SaaS competitors in every space.<p>Most of them seem incrementally better than the others (or much better but not 10X better as the old adage used to be).<p>Are all new SaaS businesses effectively a play on &quot;Your margin is my opportunity&quot;?<p>What do you think?

9 comments

rozenmdover 1 year ago
My point of view as the maker of the 200th uptime monitor (that also handles status pages and heartbeat&#x2F;cron job monitoring - <a href="https:&#x2F;&#x2F;OnlineOrNot.com" rel="nofollow noreferrer">https:&#x2F;&#x2F;OnlineOrNot.com</a> ):<p>It&#x27;s more like, &quot;[their] mediocrity is my opportunity&quot;.<p>Folks are tired of paying a premium price for UI you have to train people to use because it&#x27;s not intuitive.
chedokuover 1 year ago
&quot;Commoditize&quot; refers to a process in which a product is essentially deemed identical to the same class of offering presented by a rival company. Commoditized products allow consumers to make purchasing decisions based solely on the price-tags of the item in question.&quot;<p><a href="https:&#x2F;&#x2F;www.investopedia.com&#x2F;terms&#x2F;c&#x2F;commoditize.asp" rel="nofollow noreferrer">https:&#x2F;&#x2F;www.investopedia.com&#x2F;terms&#x2F;c&#x2F;commoditize.asp</a>
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philomath_mnover 1 year ago
I feel like this is kind of like asking &quot;Isn&#x27;t most software already written&quot;?<p>There are practically infinite ways to provide value with software. Some SaaS are definitely commoditized, but in general there are endless ways to differentiate.
soulchild37over 1 year ago
It can look incremental to the founder &#x2F; dev, but can feel like 10x better for the customers.<p>I would say if the customers get access to the founders &#x2F; devs directly, you are 90% ahead of the competitions who outsource support (who can&#x27;t actually fix stuff and used to buy time) or use AI bot (same)
quickthrower2over 1 year ago
Margin can be an opportunity (incumbent overly expensive options are what a lot of solo startups can pick away at).<p>But there is more. For example being a smaller company that gives more attention, or being a bigger one that can tick all your compliance requirements. Or being local (same country). Or just marketing to a group that doesn’t know the other options.
ActorNightlyover 1 year ago
SaaS, by definition, is essentially an arbitrage on developer time. Buy developer hours which result in a product, sell that product to others at a cheaper rate then it would have cost them to hire their own developers.
syndicatedjellyover 1 year ago
SaaS spans so many different industries with various market dynamics and regulations that it’s hard to even know how to answer that question
qupover 1 year ago
There aren&#x27;t even entrants in some spaces. Find some niches you don&#x27;t already know about.
firemeltover 1 year ago
what is commoditized means?
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