In case there was any confusion: I do not, do not speak for my employer or anyone else. So there.
“ Over the last two years, I have had the chance to validate these guidelines with many SaaS businesses, and it turns out that these early guesses have held up well. The best SaaS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8. And many of the best SaaS businesses are able to recover their CAC in 5-7 months. However many healthy SaaS businesses don’t meet the guidelines in the early days, but can see how they can improve the business over time to get there. „
“ Customers who move very slowly or who believe that a private cloud platform should integrate tightly with the old world are not our target customers. Companies who want to extensively customize their own cloud platform are not our target customers. Organizations who are looking to employ large groups of IT staff in building and maintaining a private cloud are not our target customers. „
“ More broadly, though, AWS hasn’t really had innovation competitors to date. Microsoft Azure is a real competitor, but other than in PaaS, they’ve largely been playing catch-up. Thanks to its extensive portfolio of internal technologies, Google has the potential ability to inject truly new capabilities into the market. Similar to what customers have seen with AWS — when AWS has been successful at introducing capabilities that many customers weren’t really even aware that they wanted — I expect Google is going to launch truly innovative capabilities that will turn into customer demands. It’s not that AWS is going to simply mount a competitive response — it will become a situation where customers ask for these capabilities, pushing AWS to respond. That should be excellent for the market. „
The implications of a DYI approach are profound, and in some cases, organizations won’t see the impact of their choice for months, or years. While this is not the appropriate context to explore those implications (but my future research paper on OpenStack will touch on it), one point is out of question: there are a growing number of IT organizations that embrace risk in a new way and reject the established approach to enterprise software.
The question is if this new class of IT organizations will mature to a more risk adverse mindset as they grow, joining the pool of traditional enterprise companies, or if that risk tolerant mindset is here to stay. And if the latter: are vendors prepared to talk a language that resonates to this new class of IT professionals and offer them tools that can fit their needs? More on this in my third section below.
“ A: It’s true. It is a function of our uVM resource optimization software. xStream intelligently abstracts the underlying resources of compute, RAM, storage IOPs, and network bandwidth and uses advanced techniques to efficiently manage these resources. We completely eliminate the definitional bounds of virtual machines thus eliminate resource waste. We don’t force customers to fit VMs into preset sizes. The preset size for AWS is precisely why their hourly cost exceeds ours in the example offered – their instance has 7.5GB of RAM rather than the 4GB asked for in the Cloud Spectator analysis. You can’t get precisely 4GB from AWS, but if that’s what you need you have to move up to larger instances. Furthermore, our customers can “right size” a VM’s resource via our uVM technology without having to pay more for consumption. As an example, if our customer allocates 8GB of memory to a VM, and it consumes 4GB of memory, then they pay for 4GB. The uVM will reflect actual consumption, not an allocated amount of resource. This means we’re able to deliver faster results with fewer resources, ultimately benefiting the customer with better math. „