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One Thing is Clear: AI Makes a Lot of Business Software Look Awfully Expensive Today. We are all becoming prompt engineers now. If youre not thinking about how to integrate AI into your product and businessmodel and make it truly 10x better, youre already behind. Is Deflation Coming? #5. And front and center. #10.
AWS, Twilio, Heroku, etc. Makes capacity planning harder : With less visibility into maximum usage requirements, engineering teams may struggle to provision infrastructure appropriately. The traditional SaaS businessmodel of annual prepaid contracts based on seats faces challenges when a human is no longer operating the software.
Strategic finance can be thought of as a project management function for your company’s underlying businessmodel or a BizOps team that operates within a more financial lens. Strategic Finance optimizes a company’s underlying businessmodel to create long-term value by increasing revenue and decreasing costs.
Until recently, only industry titans like Microsoft, Amazon, and Google could successfully and effectively harness continuous, real-time data use statistics to fuel events-based billing models. The pay-as-you-go model has since been the catalyst for Amazon’s rapid growth and dominance in the marketplace. How AWS Does It.
Engineers are more productive because Github’s Copilot writes 50% of code. GenAI and the BusinessModel Perspective From a businessmodel perspective, a few things are happening. Amazon wasn’t built as a Cloud business or storage company. It was built as an incumbent e-commerce business.
For us, the SaaS model Amazon Web Services (AWS) offered was an amazing one to look at. Multiple successful exits and valuations of Open Source companies like Confluent, HashiCorp, and Databricks show strong businessmodels can and do exist, and SaaS-based models help more COSS companies succeed in the Cloud.
They had open cores and created enterprise features around it to protect the businessmodel until it got torpedoed by AWS early on. But eventually, it becomes engineering. Engineering is where customer success is horribly underrepresented. That would have been counterproductive.
Given that engineering is a core competence in software development, it should come as no surprise that there are plenty of ways to measure. See more about all 3 M’s in these two companion blog posts, Part 1: User Model and Part 2: Monetization. By implication, one-off features and changes reduce software delivery efficiency.)
How Will AI Effect Software BusinessModels? Like many, I’ve been thinking about how AI and foundation models will effect the world of software. In particular - how AI will effect software businessmodels. Or hire less engineers but write more code with tools like GitHub Copilot. The list goes on.
2020 left no doubt: the growth of cloud computing is firmly grounded in the SaaS businessmodel. This is a not one-sided convenience to just make life easier for the technology side: it’s a delivery model that structures how resources within the SaaS platform serve your customers.
Optimize cloud economics and drive Business Goals. Proven best practices that help both finance & engineering teams Of course, not all customers want to pay for all the features. See more about all 3 M’s in these two companion blog posts Part 1: User Model and Part 3: Measurement.
It wasn’t the case 20 or even 10 years ago, where the businessmodels of the internet were more focused on eCommerce, marketplaces, or even advertising. Customer success teams are basically about building at scale this self-serve engine. Those two are great models, but each one of them has their flaw.
These forward-thinking businesses are using diverse monetization strategies to better serve their customers and differentiate their offers from the competition. Amazon Web Services (AWS) is a poster-child for the Relationship Economy—they truly understand the modern B2B customer. with numerous upsell and cross-sell opportunities.
It’s less expensive than it’s ever been in terms of actually getting a product to market, whether it’s leveraging platforms like Salesforce or GCP or AWS or Heroku. It’s really important to turn things around, and we all know about customer-centric design and engineering.
It was around that time about 12 years ago that Jeff Bezos launched AWS, and some of you may remember that, when he did this, Wall Street analysts were looking at him and saying, “Why would you take what’s already a very unprofitable business and drive it further into the red by investing in this AWS initiative?”
Google Compute Engine (GCE), Digital Ocean, and Amazon Web Services (AWS) are all good examples of IaaS. Platform as a service, PaaS, is also a cloud computing but service providers deliver platforms to clients, allowing them to develop, run, and manage business applications without the need to build and maintain the infrastructure.
In my article “SaaS” is not to be understood as an industry, but rather as an innovation wave (product and businessmodel innovation) which impacted the B2B software industry in the 2000s and came after the “on-premise” wave. As a side note, the “bigger picture” is the B2B software industry here.
Google App Engine — Google's cloud platform allows developers to use all the most common development tools in the cloud. AWS — Amazon Web Services is perhaps the most used of the cloud infrastructure options. Google Compute Engine — Google's cloud-based infrastructure service features virtual machines hosted at Google's data centers.
Cloud marketplaces like AWS Marketplace, Azure Marketplace and Google Cloud Platform Marketplace are digital storefronts where companies can list their offerings for software buyers to find, purchase and provision software. . Marketplaces will enable creative and flexible new businessmodels.
Notable PaaS providers include Google App Engine, Adobe Commerce, and Heroku. It’s suitable for businesses wanting control over their infrastructure and the ability to scale. Key examples are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform, which provide scalable resources like virtual servers and storage.
Many companies are strategic consumers of open-source software as a means to reduce the burden on their software engineering team to build everything from the ground up. In particular, I think a good mental model for thinking through the decision is to consider a handful of primary questions: How technical is the end user or operator?
CAC payback is the single best measure of the efficiency of your go-to-market engine. As an important aside, it’s worth noting that product led growth (PLG) companies have a shorter CAC payback than companies with a traditional sales & marketing driven go-to-market model. Calculating: CAC Payback Basics and How to Calculate It.
One of the most famous lines from Citizen Kane is, “It's no trick to make an awful lot of money, if that's all you want is to do is make a lot of money.” That’s never been truer for software businesses in particular than in the past 10-15 years, with the internet stimulating an explosion in the number of viable revenue models.
Are there types of companies, market segments, industries, or businessmodels where PLG does not make sense? If you have a very complicated product–for example you sell AWS or you sell Snowflake–those are infrastructure products. They have a hurdle because it usually requires an engineer to set it up and then you can use it.
It’s a brutal, awful slog in the start. I would say, it’s always good to call out just how awful it is to be a founder, to be an entrepreneur, because that is a unique perspective that you bring to the board room that no one else shares. Think of the businessmodel behind being an independent board member.
With a background that includes leadership roles at AWS, Microsoft, and Lenovo, Fred brings a wealth of experience in building high-performing teams and driving revenue growth. And I know you’ve had some great experience, particularly while you were at AWS, running different partner sales, channel sales. They cannot resell.
As Workplace’s global head, Julien Codorniou has been spending the past few years exploring how to make his department align with Facebook’s mission while executing an entirely different businessmodel that relies on companies promoting community within their workforce. Unlocking a new businessmodel.
Besides building a growth model and forecasting your growth from it, which I absolutely recommend you should do, what are the factors that contribute to how quickly you need to be investing in that second product after the first product finds product/market fit? B2B requires suite expansion. Why does B2B require suite expansion?
Both disruptions radically redefined content platforms, businessmodels, and customer habits. These models used vacuum tubes and offered excellent sound quality, but they were inefficient, clunky, and expensive. They were cheap, small, and portable … but the sound quality was awful. Smartphones. Retail medical clinics.
Justin Bedecarre: During the pandemic, HelloOffice, my company has promoted engineering manager, [Jaziel 00:17:46] out of Dallas, our first remote engineering manager. Is AWS in the lead? You don’t have to live in a short drive distance away or a long drive distance away from HQ to contribute and have a big impact.
Technology made internet connectivity widely available and set up basic protocols for communication Basic Application Phase: Early search engines (Google, Yahoo), eCommerce (Amazon, eBay) and email applications. Businessmodels changed an unlocked new vectors of scaling. But, a lot of that hype translated to real value.
Get back into experimentation mode with our businessmodel, with our pricing, to really think about not just how we can shrink costs, but inflect growth on the top line so we could ultimately control our own destiny, which is in fact what we did. So we spent a lot of time there. Some of you know this, but some of you don’t.
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