[dboreham]

This is complete nonsense, right? SaaS prices have nothing to do with input costs --- prices are plucked out the air (or from somewhere else...) based on some guess about what the market might bear vs aspirations for volume. Then, once the smoke clears, you jack the price up a bit in order to buy a new boat.

[SoftTalker]

As TFA says, these companies know that their "all in one" cloud offerings are sticky. My employer just spent the last few years going all in on Microsoft's cloud. We use it for email, productivity suite, Teams, storage.

This was after several years of using Google's tools (though not with the same level of commitment -- we still used Office, and had Exchange and AD on premises). Google jacked their prices for Workplace so that was the motivation to move to Microsoft. I fully expect Microsoft to do the same, in another year or two, but this time around I don't think we'll change -- this time we're too invested, it would be too big a project and have too many ancillary costs.

If we had been more "all in" on Google, we probably would have just paid the increase.

[randomdata]

> SaaS prices have nothing to do with input costs

Price always has nothing to do with input costs. That is not unique to SaaS.

[coffeebeqn]

It seems a little dangerous. Maybe many companies will be like - you know we panic bought all these online things during COVID and do we really use them all that much?

[mym1990]

I think this is called price discovery.