[shardullavekar]

I worked at a large enterprise and similar SaaS tools were outright rejected because the per user/month pricing easily crossed $20. It became unviable to use such tools. We had a lot of to and fro with supply chain over this. This pricing shift addresses the concerns supply chain had back then.

[Spivak]

Don’t you just negotiate a sweetheart deal? What company won’t take a fistful of ARR?

[shardullavekar]

That could have happened if the supply chain moved fast. In our case, they took their sweet time and played cold. They were also not convinced for a lock-in/renewal at a price (although negotiated). From their experience, they almost had to renew a SaaS software once it was 2 years into the company.

Open source + pay as you use + capped pricing solves a lot of it.