SaaStr

DECEMBER 7, 2020

3. “Atlassian and AWS Say: Maybe Worry a Little Bit. Atlassian and AWS, two of the greats, may hold a clue: Atlassian and AWS Say: “Maybe Worry a Little Bit” 4. “A Framework For Your First SaaS Sales Comp Plan” A SaaStr Classic, still going strong in 2020. With the actual cold emails.

Venture Capital 332

Venture Capital Sales Hiring AWS Cloud 332

Tom Tunguz

JULY 24, 2024

AWS & others have stopped charging to move data. AWS cut prices more than 100 times in its first five years. Plus, data movement is less expensive than in the previous era. New data formats like Iceberg simplify data movement. Both have decreased switching costs.

AI 307

AI Artificial Intelligence AWS Innovation 307

SaaStr

APRIL 24, 2021

We could have picked many B2D services, like Twilio or others, too, which have primarily or substantial transaction pricing too. First, Snowflake rolls its large customers into fixed comittments (as does AWS and many others), and bills them in advance.

Merchant Services 360

Merchant Services SaaS Payments Payment Solutions Payment Services 360

SaaStr

MAY 16, 2022

So follow AWS, Azure and Google Cloud. Stock prices go up and down, inflation will come down, and interest rates won’t rise forever. Let’s look a whole level up to the real canaries-in-the-coalmine: AWS, Azure and Google Cloud. So much going on in economy right now, from inflation to interest rates. Not bad for #3!

Cloud 286

Cloud Azure AWS Engineering 286

SaaStr

NOVEMBER 6, 2023

On top of that, inflation and price increases are eating into overall IT budgets. Growth in public cloud services (AWS, Azure, Google Cloud, Snowflake, etc.) will grow the fastest at 20.4%, and price increases and increased utilization at existing vendors will consume a significant amount of that growth. With some big caveats.

Merchant Services 300

Merchant Services Azure Software AWS 300

Chargify

AUGUST 17, 2020

However, with the introduction of Events-Based Billing by Chargify, this event-based billing model is now available to small and medium-sized businesses, giving them the ability to offer the same pricing models and bill customers just as precisely as Amazon Web Services (AWS) or the popular voice and messaging platform Twilio.

AWS 98

AWS Payment Services SaaS Payments Payments 98

SaaStr

AUGUST 15, 2020

Recently I was catching up with a good friend who used to be CEO of an enterprise-y SaaS social networking company — and the usage and engagement numbers of his business were just awful. OK, just renew at last year’s price. Well, if we do, let’s get a big price cut if usage isn’t high. Should we renew?

AWS 337

AWS Churn Enterprise Engagement 337

SaaStr

NOVEMBER 17, 2023

The prices would be lower today for the latter two I suspect. ARR was the Median acquisition price in a “take private deal” Interestingly, it’s not all that different post-Boom and pre-Boom, as you can see above. What did he find? You might be worth less ? is interesting to see.

AWS 313

AWS SaaS Pricing Acquisition 313

SaaStr

FEBRUARY 2, 2023

CloudKeeper from TO THE NEW, is a cloud spend optimization solution that guarantees to cut down your AWS bills by 5-15%. With CloudKeeper, we have helped 200+ of our customers optimize their AWS spend with a guaranteed reduction in their AWS bills. RI pricing for On-demand usage. No lock-ins. Savings from Day 1.

Cloud spend optimization 257

Cloud spend optimization AWS Scale compliance 257

Tom Tunguz

APRIL 28, 2022

Paying five decentralized providers in five different tokens means managing several wallets and monitoring token prices to hedge expenses. That’s much more work than the automatic credit card payment with AWS. Tokens reward the validators and the stakers powering the decentralized networks.

Payment Solutions 268

Payment Solutions GCP(Google Cloud Platform) Startup Payment Features 268

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). Change in Share Price At the end of the day what investors care about is what happened to the stock after earnings were reported. What I’ve shown below is the market-adjusted stock price reaction.

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

SaaStr

DECEMBER 27, 2023

Many have used Digital Ocean at the cheaper, simpler version of AWS-Azure-Digital Ocean to get going fast and quickly. Customers Just Tried to Optimize Their Spend — Even Tiny Ones You might not think smaller Digital Ocean customers would be putting as much energy into optimizing their cloud spend as say a $1m a month AWS customer.

Scale 285

Scale AWS Azure Cloud 285

SaaStr

MAY 21, 2022

ZoomInfo was the first post-Covid IPO in June 2020, and it priced at $8.3 A few case studies: * Sprout Social IPO’d in December 2019 at an $800m market-cap. It’s tripled. Its PLG-assisted sales motion has kept it capital efficient, and today it’s worth $2.7 It’s doubled. Zscaler’s market cap before Covid was about $6B.

AWS 282

AWS SaaS Cloud Scale 282

SaaStr

MARCH 23, 2023

Don’t put your financial health in jeopardy to pay a ton of taxes now in hopes of selling for a higher price later. What if the stock price falls 50%? They aren’t that OK if the stock price falls 50%, actually. Taxes are important, and confusing. Are you OK with that? If so, maybe hold the rest. And have seen a lot of IPOs.

Startup 268

Startup AWS Pricing Marketing 268

SaaStr

FEBRUARY 21, 2024

AWS can’t support 20 partners equally. When partnering with big folks like Drata does with AWS, you have to bring business to them. Drata was one of three companies mentioned on stage by AWS’ Head of Partnerships because they did the most transactions on the marketplace than any other company. That’s a high value for AWS.

AWS 273

AWS Scale Sales Hiring Marketing 273

SaaStr

DECEMBER 12, 2022

A second multi-billion dollar vendor gave us 8 days to pay a massive price increase without notice. The way this public company did it was — awful. #3. That’s the entire annual price we were paying the prior vendor. I know I just didn’t even know what to say. #2. Oh, loved this one. Where was the notice?

Customer Success 321

Customer Success AWS Systems Review Software Review 321

SaaStr

APRIL 30, 2022

We look at annual churn, given the nature of those businesses that have annual or multi annual contracts with much bigger price items and tickets. I believe pricing is not enough … There’s not enough investment from companies going into pricing and thinking about pricing. Pricing is so sticky inside companies.

SaaS Payments 246

SaaS Payments Metrics Payment Methods Scale 246

Clouded Judgement

FEBRUARY 7, 2025

They each have some of the largest cloud businesses in the world in AWS, Azure and Google Cloud respectively. Cloud Giants Report Q4 ‘24 We now have the quarterly reports from Amazon, Microsoft and Google. Overall, there was weakness across the board. Not the best start to cloud software earnings season!

Systems Review 144

Systems Review Cloud AI Artificial Intelligence 144

SaaStr

MAY 19, 2019

But, they were also able to raise prices. They also raised effective prices, however. Gross margins have grown to best-of-breed at 83%, after a migration to AWS and more automation in customer support. Gross Margins have improved substantially.

SMB 270

SMB Customer Lifetime Value AWS Churn 270

Clouded Judgement

OCTOBER 11, 2024

For software companies, this phenomenon can be a tailwind, as it drives accelerated deal closures and increased sales velocity, sometimes with less price sensitivity from buyers looking to quickly deplete their budgets. As a result, software vendors often see an uptick in revenue and bookings during these periods. Cloudflare is up 17%.

Cloud 167

Cloud Cost optimization & reporting GCP(Google Cloud Platform) Software Review 167

SaaStr

SEPTEMBER 28, 2023

You can have all of this, the entire Enterprise pricing column, on day one of launch. If you go back 10-15 years, when people ask about build vs. buy for the long-term, people would consider building their own data center if they were spending $100k/month on AWS. And you should. In a new category, you’d win the deals.

Enterprise readiness 277

Enterprise readiness Payment Solutions Enterprise Payments 277

SaaStr

DECEMBER 14, 2021

Commoditization From AWS & Google Cloud. The ASP was shrinking, so sales were having difficulty overcoming the objection of comparing prices to competitors. Fight large competitors like Amazon and Google with performance-per-price through raising a large amount of money. Competition in the market rose sharply.

Sales Hiring 300

Sales Hiring Data AWS Leadership 300

SaaStr

JUNE 28, 2023

The classic “high-end of self-service” price point. It’s tough out there in the public markets, folks. 5 Interesting Learnings: #1. Crossed 100,000+ Paying Customers, So About $2,800 ACV Per Customer. But $10k+ customers growing fastest. But $10k+ customers are growing 45% , so that’s where the biggest growth is. #2. A valuation of 4x ARR?

Scale 255

Scale AWS Scaling Revenue 255

SaaStr

MAY 12, 2019

We all know this from AWS and Twilio on down, but Fastly is a visceral reminder. Yes, Fastly is a developer-focused platform with $100k+ price points. It’s also a great one to learn from, at $200m+ ARR ($45.5m GAAP revenue in Q1 ’19) because it’s in a space filled with strong competitors. Make it easy, folks!

Outsourced Development 257

Outsourced Development AWS Retention Enterprise 257

SaaStr

NOVEMBER 24, 2021

Pothole #2 – Increasing Pricing Rate Without a Sustainable Moat. Raising prices might seem like a quick win to grow your revenue, but it’s critical to bear in mind the effect increased prices will have on your sales cycle, close rates, and disruption risk. Sell it to your market for half the price.

Sales Hiring 253

Sales Hiring Scale Compensation Sales 253

SaaStr

MARCH 31, 2022

And it’s one of the three large cloud vendors that we all know: Microsoft, AWS, and Google. AWS’s marketplace has seen 1.5 But also it’s allowed us to get much closer to our provider, I mean, we host and run 100% on AWS, but pull data from everywhere. It was pretty easy to drive that from our side.

Scale 256

Scale Marketplace as a Service Cloud SaaS Payments 256

SaaStr

JULY 1, 2024

Everything you have now will probably look different upmarket, including pricing. Pricing is a big one. You have your pricing strategy for down-market customers, such as how you price the bundle, packaging, etc. You want to test pricing by going to the market and seeing if it works. It’ll also likely be wrong.

Sales Hiring 293

Sales Hiring Scale SMB compliance 293

Tom Tunguz

JULY 26, 2022

Microsoft Azure may have more customers under fixed contracts compared to Google, which may have more customers on a usage-based pricing model. AWS is the largest infrastructure provider by revenue, so its trajectory will shed more light on the patterns of software buyers. I bet it’s some combination of the three.

GCP(Google Cloud Platform) 224

GCP(Google Cloud Platform) Cloud Azure AWS 224

SaaStr

NOVEMBER 8, 2022

Does it cost so, so much to host a few million lines of code on AWS? As soon as your competitor cuts prices and quintuples their marketing budget … and is everywhere … can you stay out of the arms race? Raise prices tomorrow. If your competition is fierce, raise prices even more. So is SaaS cursed?

Scale 286

Scale SaaS Banking AWS 286

SaaStr

DECEMBER 20, 2023

For example, Google and AWS are already ZoomInfo customers, but only certain sub-segments within those businesses – not the entire org. By examining a company, their intent data, the companies visiting their website, who’s on the pricing page, who the buyers are, etc.,

New CTO 305

New CTO Scale Sales Hiring CTO Hire 305

Sales Hacker

JANUARY 7, 2025

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.

Outsourcing Services 114

Outsourcing Services Scale Outsourced Development AWS 114

SaaStr

JULY 8, 2023

At AWS Reinvent, if your customers are there. That can be 5x-50x the price. At Dreamforce, if you are in the SFDC ecosystem. At Shoptalk, if you are in eCommerce. At SaaStr Annual , if you are in SaaS and especially if you see to founders or revenue leaders. At least do a dinner or a party and get as many to come as you can.

AWS 257

AWS Enterprise Pricing Marketing 257

Tom Tunguz

NOVEMBER 4, 2014

Most startups play defense when discussing pricing with customers. They use pricing as an offensive tool to reinforce their product’s value and underscore the company’s core marketing message. For many founding teams, pricing is one of the most difficult and complex decisions for the business.

Pricing 125

Pricing Startup SaaS Payments Payment Methods 125

SaaStr

AUGUST 7, 2021

Telling Me the Price is Going Up. If the price goes up, and it’s still good for both of us, so be it. But telling me the price goes up at Midnight isn’t the way to build a 10+ year relationship. This is sort of awful. Their CACs or cost structures are just too high. That’s great. Herd the cats.

Sales Recruiting 339

Sales Recruiting Scale AWS Investment 339

Clouded Judgement

MAY 3, 2024

We now have results from the three hypersclaers (AWS / Azure / GCP). The most notable change in tone was Andy Jassy talking about AWS. Subscribe now Cloud Giants Report Q1 + Early Look at Software Results Q1 earnings seasons has officially kicked off! ” Full quote below: “We're seeing a few trends right now.

Cost optimization & reporting 190

Cost optimization & reporting Cloud Software AWS 190

SaaStr

MARCH 22, 2023

Ed Lenta, the SVP and GM of Databricks, had the rare opportunity of scaling three hypergrowth companies — VMware, AWS, and Databricks. At VMware, they priced based on physical CPUs customers chose — a hugely transactional service that constrained growth. Of course, we all know how that turned out. But it also defines your GTM efforts.

Scale 255

Scale Scaling AWS Sales Hiring 255

Clouded Judgement

SEPTEMBER 27, 2024

Subscribe now Foundation Models Are to AI what S3 was to the Public Cloud Many people look at 2006 as the birth of the public cloud - the year Amazon launched AWS. On top of that- we HAVE seen significant pricing pressure. In the last 18 months GPT4 has dropped ~90% in price! Follow along to stay up to date!

Cloud 176

Cloud GCP(Google Cloud Platform) AWS Azure 176