Comments - Creating margins after SaaS - by Yoni Rechtman
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Creating margins after SaaS
This is my “end of SaaS” post. There are many like it, but this one is mine. Read →
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Liked by Yoni Rechtman
i'm not sure about saas margin compression. the table shared in the post, the compression is due essentially entirely to the rise of inference costs; but i think providers can easily shift to open source models to reduce inference costs to a potentially negligible amount. in that case so the metrics look different, but the final margin calculation results in the same answer.
i also think network effects still apply. i've had to become more of a python and react guy because LLMs do better in those modalities than in more esoteric instances. even something like vercel deployment is well trained upon. i wonder if this is the foudnation for tomorrow's network effects.
great, thought-provoking post as always.
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The table/income statement is directional. If inference is not as big of a factor as I think it will be, it might just mean that sales and marketing gets even worse because everyone is doing the same stuff and has the same features. Cost to build is even lower
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you had me at "homebrew everything"
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i think it was "don't homebrew everything"
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nope, pretty sure i'm correct
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Link?
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