I can never understand why companies can’t make their money from
offering services around the product. i.e:
The problems with a purely service based business model are:
- It doesn't scale well. Generally you're billing for consulting time
at an hourly / daily rate and there is a limited number of these you
can bill for each member of staff per month.
- Margins are pretty low if you take into account average utilisation
of each staff member, sales overhead, etc. This leaves a limited
budget to fund the software you're giving away for free in order to
drive services revenue.
- Feature sponsorship works to a point but there is always a portion
of code development that no one wants to sponsor
Offering Opsview in a SaaS model is interesting, I'm not sure how well
monitoring software lends itself to this model though. There are some
use cases where it will work, but many where it won't.
These should be considered my opinions rather than those of Opsera
Limited.
--
James
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