[snowwrestler]

The general form of this is “don’t let your pricing become uncompetitive.”

For basic server capacity, leasing or buying your own hardware is a competitor.

But for software higher in the stack, like collaboration or marketing platforms, there’s often no “on-prem” option. So a SaaS business just needs to stay close enough in price to competitors that the pain of staying is less than the pain of migrating.

If all your competitors are raising prices… well, so can you. (And vice versa.)