[bachmeier]

> I do this for a living, first as a PM and now as a VC. These multiples are fairly common knowledge for anyone in Enterprise SaaS, and have have worked with accounts teams that have done this and have recommended similar strategies (at a smaller scale) to portfolio companies.

So the answer is no, you don't have any information not found in the link, and everything you wrote was speculation.

> You want to increase your (Revenue-COGS).

Exactly, and without knowing anything about the financials of this deal, there's no way to know if your claims are correct. It might have been an attempt to take advantage of someone that built on their product, expecting that they'll pay more.

[alephnerd]

I've worked on these kinds of accounts at a VMWare sized company before.

If you don't trust me, go chat with CROs, Product Leadership, or Execs are similarly sized companies.

I agree this is tribal knowledge, but that's how most pricing and renewal negotiatons occur, with maybe a bit of RevOps black magic to justify a decision one way or the other.