AWS Churn SMB 
Tom Tunguz
FEBRUARY 26, 2025
AWS, Twilio, Heroku, etc. Third, contracts mitigate churn rates because the customer is only making a renewal decision once per year, instead of 12x per year. Similarly, Salesforce began with a usage-based approach before shifting to annual seat contracts when churn rates became significant and revenue predictability faltered.
SaaStr
MAY 19, 2019
What lessons can we learn from this huge Kiwi SMB success, for other founders? ” So even in SMB sales in smaller markets, if you take dominant market share — you can get to $500m+ in ARR! ” So even in SMB sales in smaller markets, if you take dominant market share — you can get to $500m+ in ARR!
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Clouded Judgement
JUNE 19, 2024
It’s worth pointing out that Azure is a bit above the long term trendline, while AWS is still below (but accelerating up). For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs.
SaaStr
DECEMBER 20, 2023
So to serve both segments at the simultaneously, ZoomInfo has been rolling out a Product-led sales motion, that gives the ability for an SMB customer to sign up directly on their website for a free trial and grow into a paid customer, without ever having to talk to an sales rep or go through a demo process.
Clouded Judgement
APRIL 11, 2024
The first few months of this year felt like a lot of churning in the market. It looks at the YoY dollar change in quarterly revenue from the hyperscalers (just looking at Azure / AWS because the data goes back further) going back a few years. I consider >120% best in class for companies selling to SMBs (like Bill.com).
SaaStr
JUNE 1, 2021
The other thing that dropped our odds of success was the fact that we were focused on small business, on the SMB market, and everyone we talked to, literally everyone. Do not…,” and the reason is no one hardly ever has succeeded in building a big business in SMB. Jason : How do you find that pre churn?
Clouded Judgement
MARCH 22, 2024
At contract expiration these customers either renew (sign another contract with same annual value), expand (sign another contract with higher annual value), contract (sign another contract with lower annual value), or churn (stop being a customer and spend goes to zero). It’s probably better described as re-occurring vs recurring.
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