{"id":28191,"date":"2017-11-07T12:45:20","date_gmt":"2017-11-07T10:45:20","guid":{"rendered":"https:\/\/mamchenkov.net\/wordpress\/?p=28191"},"modified":"2017-11-07T12:45:20","modified_gmt":"2017-11-07T10:45:20","slug":"the-rising-stakes-in-saas","status":"publish","type":"post","link":"https:\/\/mamchenkov.net\/wordpress\/2017\/11\/07\/the-rising-stakes-in-saas\/","title":{"rendered":"The Rising Stakes In SaaS"},"content":{"rendered":"\n

In his article “The Rising Stakes In SaaS<\/a>” Tomasz Tunguz somewhat confirms my sentiment about the end of the startup era<\/a>:<\/p>\n

Machine learning, broad consolidation, category creation, and new distribution models each will change the SaaS ecosystem in fundamental ways. As the number of new startups ebbs, and major forces in the industry reshape it, I suspect we\u2019re going to see a massive amount of innovation in SaaS, a reinvention after the perfection of a 20 year old playbook.<\/p><\/blockquote>\n

I found the rest of his article interesting as well.\u00a0 In particular this part on how companies tend to react to the massive levels of competition:<\/p>\n

This rivalry causes four major responses:<\/p>\n

    \n
  1. Verticalization – compete with a horizontal player by picking one customer segment and building a product better suited to them. Trades market size for better product market fit.<\/li>\n
  2. Segmentation – focus on SMB, Mid-Market, or Enterprise, to play where competition isn\u2019t present.<\/li>\n
  3. Feature optimization – develop a product with 20% of the features but 80% of the value, and use a simplified product to challenge the competition.<\/li>\n
  4. Opting out of starting a company – deciding the timing isn\u2019t right because of the competition.<\/li>\n<\/ol>\n<\/blockquote>\n\n","protected":false},"excerpt":{"rendered":"\n

    In his article “The Rising Stakes In SaaS” Tomasz Tunguz somewhat confirms my sentiment about the end of the startup era: Machine learning, broad consolidation, category creation, and new distribution models each will change the SaaS ecosystem in fundamental ways. As the number of new startups ebbs, and major forces in the industry reshape it, … Continue reading The Rising Stakes In SaaS<\/span><\/a><\/p>\n\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"The Rising Stakes In SaaS #startup #business #SaaS","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_links_to":"","_links_to_target":""},"categories":[1,62],"tags":[1968,3161,3564,1224],"keyring_services":[],"class_list":["post-28191","post","type-post","status-publish","format-standard","hentry","category-general","category-technology","tag-business","tag-competition","tag-saas","tag-startups"],"aioseo_notices":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack-related-posts":[{"id":27799,"url":"https:\/\/mamchenkov.net\/wordpress\/2017\/07\/26\/the-aws-spend-of-a-saas-side-business\/","url_meta":{"origin":28191,"position":0},"title":"The AWS spend of a SaaS side-business","author":"Leonid Mamchenkov","date":"July 26, 2017","format":false,"excerpt":"As someone who went through a whole pile of trying and error with Amazon AWS, I strongly recommend reading anything you can on the subject before you start moving your business to the cloud (not even necessarily Amazon, but any vendor), and while you have it running there. \u00a0\"The AWS\u2026","rel":"","context":"In "All"","block_context":{"text":"All","link":"https:\/\/mamchenkov.net\/wordpress\/category\/general\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/mamchenkov.net\/wordpress\/wp-content\/uploads\/2017\/07\/aws-costs-500x153.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":27664,"url":"https:\/\/mamchenkov.net\/wordpress\/2017\/06\/06\/what-comes-after-saas\/","url_meta":{"origin":28191,"position":1},"title":"What Comes After SaaS?","author":"Leonid Mamchenkov","date":"June 6, 2017","format":false,"excerpt":"\"What Comes After SaaS?\" is a collection of some interesting thoughts on the evolution of the software industry, its current position and issues, and what's coming next. Here are a few bits to get you started: [T]he easy availability and mass adoption of cloud-based (SaaS) technology makes advanced software systems\u2026","rel":"","context":"In "All"","block_context":{"text":"All","link":"https:\/\/mamchenkov.net\/wordpress\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":28494,"url":"https:\/\/mamchenkov.net\/wordpress\/2018\/04\/18\/zulip-open-source-team-chat-with-threads\/","url_meta":{"origin":28191,"position":2},"title":"Zulip – Open Source team chat with threads","author":"Leonid Mamchenkov","date":"April 18, 2018","format":false,"excerpt":"Zulip is yet another Open Source team chat solution (much like Rocket.Chat).\u00a0 It has a number of cool features, including Markdown support for messages and drag-n-drop uploads, numerous integrations, and can be used as a self-hosted solution or as a SaaS.","rel":"","context":"In "All"","block_context":{"text":"All","link":"https:\/\/mamchenkov.net\/wordpress\/category\/general\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/mamchenkov.net\/wordpress\/wp-content\/uploads\/2018\/04\/message-formatting-332x500.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":27464,"url":"https:\/\/mamchenkov.net\/wordpress\/2017\/03\/28\/mautic-open-source-marketing-automation-software\/","url_meta":{"origin":28191,"position":3},"title":"Mautic: Open Source Marketing Automation Software","author":"Leonid Mamchenkov","date":"March 28, 2017","format":false,"excerpt":"Mautic is an Open Source marketing automation software, which provides a whole bunch of functionality around contact tracking, campaign management, mass mailing, landing pages, and more. \u00a0It can be self-hosted or used as Software-as-a-Service (SaaS). \u00a0The source code is on GitHub and licensed under GPLv3. It provides an API, and\u2026","rel":"","context":"In "All"","block_context":{"text":"All","link":"https:\/\/mamchenkov.net\/wordpress\/category\/general\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/mamchenkov.net\/wordpress\/wp-content\/uploads\/2017\/03\/campaign_overview-500x368.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":28188,"url":"https:\/\/mamchenkov.net\/wordpress\/2017\/11\/07\/after-the-end-of-the-startup-era\/","url_meta":{"origin":28191,"position":4},"title":"After the end of the startup era","author":"Leonid Mamchenkov","date":"November 7, 2017","format":false,"excerpt":"TechCrunch is running the \"After the end of the startup era\" article, which essentially says this: We live in a new world now, and it favors the big, not the small. The pendulum has already begun to swing back. Big businesses and executives, rather than startups and entrepreneurs, will own\u2026","rel":"","context":"In "All"","block_context":{"text":"All","link":"https:\/\/mamchenkov.net\/wordpress\/category\/general\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/mamchenkov.net\/wordpress\/wp-content\/uploads\/2017\/11\/DiffusionOfInnovation-500x309.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":37373,"url":"https:\/\/mamchenkov.net\/wordpress\/2019\/03\/07\/cloud-irregular-iam-is-the-real-cloud-lock-in\/","url_meta":{"origin":28191,"position":5},"title":"Cloud Irregular: IAM Is The Real Cloud Lock-In","author":"Leonid Mamchenkov","date":"March 7, 2019","format":false,"excerpt":"Vendor lock-in is an old and well discussed issue. Some people don't care about it all, jump right in. Others avoid it like a plague. And then there are those who allow it, with some very careful considerations. I have always been on the side of avoiding vendor lock-in by\u2026","rel":"","context":"In "All"","block_context":{"text":"All","link":"https:\/\/mamchenkov.net\/wordpress\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_sharing_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/mamchenkov.net\/wordpress\/wp-json\/wp\/v2\/posts\/28191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mamchenkov.net\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mamchenkov.net\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mamchenkov.net\/wordpress\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/mamchenkov.net\/wordpress\/wp-json\/wp\/v2\/comments?post=28191"}],"version-history":[{"count":0,"href":"https:\/\/mamchenkov.net\/wordpress\/wp-json\/wp\/v2\/posts\/28191\/revisions"}],"wp:attachment":[{"href":"https:\/\/mamchenkov.net\/wordpress\/wp-json\/wp\/v2\/media?parent=28191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mamchenkov.net\/wordpress\/wp-json\/wp\/v2\/categories?post=28191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mamchenkov.net\/wordpress\/wp-json\/wp\/v2\/tags?post=28191"},{"taxonomy":"keyring_services","embeddable":true,"href":"https:\/\/mamchenkov.net\/wordpress\/wp-json\/wp\/v2\/keyring_services?post=28191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}