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Why SaaS prices are still going up when companies are spending less

114 点作者 awwstn超过 1 年前

24 条评论

MissTake超过 1 年前
We just told 2 big vendors where to go as a result of not just 20% rises, but one was an eye gouging 600%.<p>We spent 2 manic weeks scrambling to implement alternatives but we have now done so and in the process saved ourselves several hundred thousand bucks and got arguably better systems as a result.<p>Lean doesn’t have to mean poor.
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hjhffyuu57超过 1 年前
It would be interesting to see what the corresponding figures are like for on-prem, although they would be much more difficult to calculate and would vary wildly between companies.<p>The only thing that really stood out to me was the Google storage price increase, which seems rather large, as in way out of line in comparison to our 2023 spend and 2024 budgeting.<p>It would also be nice to see what exactly is meant by SaaS vs presumably IaaS. I.e. would Amazon Glacier (random selection since we&#x27;ve been comparing the pricing with tape recently) fall under their definition of SaaS.
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faeriechangling超过 1 年前
Because SaaS business models were built around operating at a loss in order to gain a monopoly and rent seek?
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dgb23超过 1 年前
I propose a new term &quot;TDaaS&quot;: Tech Debt as a Service.<p>(Feel free to modify the name to something less clunky.)<p>A SaaS can provide a useful tradeoff. Just don&#x27;t get scared by FUD marketing tactics, like &quot;Why you shouldn&#x27;t build your own X&quot; etc. It&#x27;s a tradeoff: you introduce an external dependency and give up control.
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adrr超过 1 年前
We don’t have VCs subsidizing everything and now profitability matters.
anotheraccount9超过 1 年前
Some might be testing price elasticity with the changing market. This could be temporary.
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cyanydeez超过 1 年前
Lockin.<p>It&#x27;s the basic economics of SaaS, endoflife was just too soon.
throwawaysleep超过 1 年前
Price has little to do with cost. Price should be the maximum the market can afford while still beating ones competition.
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darklycan51超过 1 年前
As long as companies and quarterly earnings exist they will abuse their market position
itiro超过 1 年前
Prices on everything keep going up so Jpow can keep raising rates
hnaccountme超过 1 年前
SaaS = Rent Seeking
Phlarp超过 1 年前
Greed.
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knightofmars超过 1 年前
Um, capitalism?
dboreham超过 1 年前
This is complete nonsense, right? SaaS prices have nothing to do with input costs --- prices are plucked out the air (or from somewhere else...) based on some guess about what the market might bear vs aspirations for volume. Then, once the smoke clears, you jack the price up a bit in order to buy a new boat.
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steveBK123超过 1 年前
Long term rug pull on CTOs who thought the cloud would somehow be better, easier &amp; cheaper.<p>CTOs get lots of free credits, downsize their infra staffing.<p>Start using the basic building blocks, but then of the basic building blocks (servers &amp; storage) are marked up and expensive.<p>Next, to find cost savings their org need to move deeper and deeper into alphabet soup of cloud vendor proprietary stack, at which point they are locked in.
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renegade-otter超过 1 年前
Companies are going through the &quot;reduce our cloud bill NOW&quot; exercise. They have to cut the unnecessary, wasteful infrastructure <i>and</i> raise prices.<p>So, after all these years of hearing &quot;who cares about performance and cost - just buy more engineers, CPU, and memory&quot;, gravity is once again being the bitch that it is.
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rglover超过 1 年前
Turns out building massive workforces on top of software business that don&#x27;t require them isn&#x27;t good business.<p>The big mistake most companies made is that they applied the old-school &quot;Fortune 500&quot; way of company building to software businesses (i.e., bigger is better). Humorous, because the promise of software was that it <i>reduced</i> the need for that behavior.<p>The end result is that they&#x27;ve built companies which ironically have great margins (or at least, should), but they burn cash like they&#x27;re still in their seed round. Even worse, this behavior pushes out most of the early talent which means you need ever-more people to fill in the skill gap created by hiring lower quality talent. This also creates the problem of a once-great product deteriorating into mediocrity over time which also threatens grip on market share.
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paulddraper超过 1 年前
For the same reason they are spending less....to stop the red
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karaterobot超过 1 年前
&gt; Software price hikes are driven in part by inflation. The cost of living has surged post-pandemic in most economies. Higher electricity costs, chip shortages, and rising wages all increase the cost of doing business.<p>Not that there hasn&#x27;t been inflation, but prices have gone up much more in the last year than inflation itself has. Inflation is 3.2%, lower than the 100-year average in the U.S. It was higher a year ago, but still only about 9%. All of the price increases in that article are significantly higher than that, most are multiples of that. Even if they hadn&#x27;t raised their prices for a few years prior, that still doesn&#x27;t add up. I don&#x27;t buy inflation as a valid excuse, though I would it as an invalid excuse they&#x27;re still using because people perceive it as true.
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sacnoradhq超过 1 年前
The profit-price spiral of the greater economy is why. Everyone raises their prices so everyone raises their prices. 60% of inflation in this post-pandemic echo was measured to be due to corporate profiteering, e.g., greed.
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pcurve超过 1 年前
Customers have become hostages and captors have more chips to play with.
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jbs8877超过 1 年前
The cost of capital of tech companies has gone up - it’s actually turned positive! Shocker.
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tamimio超过 1 年前
Another reason why I never used SaaS.
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anonymous344超过 1 年前
SaaS companies are owned by billionaire-investors. or actually investor-companies. The ones at the top of the world. Same ones who get the printed dollad on their hands first to spend it before other common folks wake up to the fact that it was printed and starts loosing value<p>I red somewhere that 80% of dollars were printed (=made up digitally) in the last 3 years. so the inflation is now coming fast, 1$ = 20$.. that&#x27;s 5x the prices. And most common things have only gone up 50 to 150%.. more to come
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