I have more zombie infrastructure than I realized: SaaS stuff I've paid for that I don't use as much as I thought I would.
I tend to think of it as optionality, but it adds up 🤔
Demand-tracking pay-go pricing would likely expand many SaaS markets. Metering is the future.
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This is pretty much what says every day - lambdas and pay-per-use pricing are gonna redefine software as we all move beyond the "self-managed always-on servers" paradigm.
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Go-to anecdote of this is how Samuel Insull, who architected US grid power, discovered he could 10x market size by shifting from billing for installed lightbulbs like Edison to metering watts (he discovered meter tech on a trip to Brighton, UK), which made it 10x more affordable
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But why bother let someone know they can lower cost? No gym says ‘you’re not using us’ to their profit margin.
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to increase the market size. Low margin at high velocity can sometimes beat high margin at low velocity if you get the pricing design right. Max-capacity utilization of capital assets etc
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How you meter seems important. If you meter per minute, I'm going to feel rushed while using it. What Slack does seems like the right balance: regular SaaS pricing schedule (per month), with dormancy that kicks in.
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