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by bluGill
1844 days ago
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Missing: what is the customer break even for unlimited. If I buy a word processor for $.01/word, I can buy one for $100 - then I only need 10000 words to break even. You can play with different pricing schemes, but you need to ensure that enough people will find value in your scheme to pay you, because there is always the option of someone else's unlimited plan. Even if all your competitors are also on some sort of usage pricing, I can hire a bunch of developers to write me a custom an unlimited version, and maintain it - at some usage this is worth it. Of course not everything is so easy. My company pays AWS because it is cheaper to do that than to buy and upgrade all the servers we need. Our usage has busy months where we use 10x as much as the slow months, if we had consistent usage it might be cheaper to have our own servers, but we don't pay AWS for the non-peak months even though they have the servers. (I don't know how AWS handles this, that is their problem not ours) |
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