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100+ scale-ups and start-ups showing you how they do it! With 1:1 Meet-a-VC matchmaking and curated sessions, youll have unparalleled access to the capital you need to scale. From seasoned founders to rising stars, every session is handpicked to deliver actionable insights and real-world strategies to help you scale faster.
AWS, Twilio, Heroku, etc. Often, a straight UBP pricing model doesn’t scale into the enterprise. The platform fee establishes a stable relationship and the usage pricing enables the customer to scale up or down as a function of their traffic which might vary throughout the year. How about a 50 person SaaS company?
Focusing on smaller developers, in some ways it’s been a bit overshadowed by AWS, Azure, and Google Cloud. DigitalOcean is growing an impressive 37% at $500,000,000 in ARR, and staying very SMB with 600,000+ customers, but still driving deal sizes up a bit. Even if you’re far smaller than the Huge Guys.
Seat Contractions Have Brought NRR Down From 120% to 111% While 111% NRR is still quite an engine at this scale, the drop in NRR from seat contractions explains a good chunk of the headwinds Okta has seen. #2. While many tech SMBs are struggling, finding the gems in the SMB base that can grow into large accounts is still critical.
If you’re selling software to SMB merchants and outside of tech like Shopify and Toast and Monday , things are pretty, pretty good, if in some ways still harder than before. Growth in public cloud services (AWS, Azure, Google Cloud, Snowflake, etc.) So things are all over the place these days. But it’s not that simple.
This episode is an excerpt from a session at SaaStr Scale. 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.
Customers range from AWS skills-builder platforms with billions of users to Zoom using it for customers and employees. They started via SMB and are now serving the Amazons of the world. The bigger you scale, the harder this can be. The more SMB you are, the faster the sales cycle and the quicker the team learns.
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.
Right now, you may have 3-4-stage sales processes that work for SMB customers. Hopefully, you’ve built a partnership ecosystem for SMB customers, but it’s probably a completely different strategy for what you need to go upmarket for a couple of reasons. So, find sellers inside your sales org who can at least get you started.
It’s worth pointing out that Azure is a bit above the long term trendline, while AWS is still below (but accelerating up). As a public company with significant scale, it’s hard to grow quickly if you have to rely solely on new customers for that growth.
But I'm not here to talk about hyper-scale, public clouds such as Amazon Web Services (AWS), Azure, or Google Cloud. I want to talk to you today about clouds. They're great, but for many, they're overkill.
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. I’m paraphrasing… [laughter]. It got better.
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. If we break this down and look at Azure and AWS independently (graphs below), you’ll see how the AWS “swings” were a lot more volatile.
Then, we’ll end of the day with me and Stewart Butterfield and obviously Slack is doing well, but Slack also has a massive SMB base and its challenges. For example, we’ve got like Roman from Gorgeous that Sam knows at the end of the day talking about dealing with SMB turns, they did something interesting at Gorgeous.
For SaaS businesses that target smaller SMB customer segments, gross retention is typically in the mid to low 80’s with net expansion in the ~105% range. This is why the consumption players (Snowflake, Mongo, Confluent, Azure, AWS, etc) so more variability in the macro slowdown.
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?”
You can see the growth on the platform side with Azure, Google, and AWS and how much it’s accelerating in AI. Or Scale AI securing $1B. They’re very SMB and just closed their first $750k TCV deal. To some extent, it’s not clear. Maybe endless price increases,” Jason says. A lot of it is moving to versions of AI. in 12 months?
And then I spent a year at Salesforce working on Marc Benioff’s extended leadership team, and really had a chance to learn how important trust can be, and also really learn from Salesforce, from Mark, how do you really build a global SaaS leader at scale? It’s most severe in the SMB world.
We’ve all seen AWS and what they’ve done with their platform. Even at spectacular scale, they’re still growing at 30%. Law number one, in the cloud economy, scale wins. Everyone knows Shopify for what it is today, but in the earlier days, it really was the best SaaS platform for SMB eCommerce providers.
Think about the last time you went to buy something and had an awful experience with a sales rep (in any capacity – the mall, a store, online, or at work). And candidate experience is essential if you want to scale quickly. There is a big difference between the Enterprise market and the SMB market. How did you feel?
Related podcast episode: How MongoDB Scaled Their Open-Source Product with a Bottom-Up and Top-Down Sales Motion. However, a good question to ask yourself when considering the reduced friction is: Could you get the same benefit with a scaled-back, freemium offering? Are you targeting enterprise or mid-market/SMB?
But if you target SMBs or consumers, PLG is a fantastic way, and you have a very large user base to reach out to as well. If you have a very complicated product–for example you sell AWS or you sell Snowflake–those are infrastructure products. Then, any marketing budget or any acquisition effort you do at large scale is not wasted.
OnRamp is hosting a CCO Happy Hour from 5-7 ahead of the CCO Summit on Wednesday The AI Frontier Scaling Agents & Driving Innovation in SMB and Enterprise side event from 6-8pm in Mountain View with Nebius, CEO of Otter.ai, VP AI at EvenUp, CEO HeyBoss AI, and more. CFOs and VPs of Finance with tickets are invited! Will be fun!
SaaStr 644: Lessons Learned in Scaling Early-Stage to Hyper-Growth Companies: From VMware, AWS and Databricks with Databricks SVP and GM Ed Lenta 2. Lessons Learned in Scaling Early-Stage to Hyper-Growth Companies: From VMware, AWS and Databricks 2. When You Fall Out of Product-Market Fit Is Cold Calling Dead?
I just thought that if there was anybody left at the end of day two that had anything they wanted to talk about, scaling SaaS, fundraising, hiring, anything, and I could be helpful, we could do a little extra Q&A. I’m going to get the numbers wrong, I think Amazon has 10,000 open positions out in AWS. It works out.
The GTM Podcast is available on any major directory, including: Apple Podcasts Spotify YouTube Fred Viet serves as the Chief Sales Officer at Aircall, overseeing global sales and playing a key role in scaling the company’s reach over the last four years. Where in Australia, you can be a bit scrappy. Scott Barker: Yeah, that makes sense.
I saw we had the opportunity to do that in London and to do something that will be new for Facebook, in the same way that AWS was a new business model and product line for Amazon and a bet that paid off very well. We are going from having an enterprise business to having a mid-market business to investing in an SMB business.
And I remember being at that Dreamforce in 2009, which was awful. So on a scale of one to 10, what type of feedback do you want? The CEO says SaaStr scale is really important that everyone drops everything, and it’s not that important. ” I’m like, that sounds awful. I mean, literally.
In a previous post , I talked about how product work post-product/market fit shifts from zero to one innovation to features, growth, and scaling work. Pinterest and Snapchat were compared a lot because we started scaling at around the same time. You can read parts 1 and 2 here and here. I have written more about platforms here.
Whether you’re trying to scale your business or scale your career – you’re in the right spot to learn from the best of the best. Best case is that you validate your fit and scale and worst case is you have great product feedback to go build before you try again. Remember this is an experiment.
Cassie is an operating partner at Primary Venture Partners, where she works closely with Primary’s portfolio companies to help them build, scale and optimize their go-to-market efforts. It took me a long time to admit to myself that I don’t enjoy transactional SMB sales. What you do matters, but character matters more.
We’ll have 1000+ speakers, braindates, workshops, and 1-on-1’s, but here are some of the core speakers for this year: AI Speakers: CEO Snowflake Sridhar Ramaswamy + CEO Observe: “Where B2B Applications Are Going” CEO Box Aaron Levie : “AI, Agents and The Next Era of SaaS” COO Google Cloud Francis deSouz a: “Hyperscalers: (..)
I do want to dig in there, because you were such a transformational moment in Twitter’s trajectory, and so kind of diving in there and really starting on the people side, I’d love to hear what were your biggest lessons on how to hire successfully at such scale? Often early stage startups post raise need to scale and hire quickly.
Hello and welcome to The GTM Newsletter by GTMnow – read by 50,000+ to scale their companies and careers. Over the years, he built and scaled a world-class sales organization, creating a team that generated hundreds of millions in revenue. For Outreach, that threshold was 25 deals. Culture becomes the engine.
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