[leros]

I don't know about Vercel explicitly, but enterprise plans are usually more than just larger quotas. You get access to solutions engineers that will help you solve problems. You get higher uptime guarantees. You get SLAs like 24 or 48 hours for bug fixes that impact you. You get access to a phone support line where someone picks up immediately. Lots of stuff that reduces risk for your business and your customers. As a business, you can only offer SLAs to your customers that are as strong as the SLAs of your hosting service, so that becomes important once you get into the enterprise world.

[lumos]

I guess I should rephrase, a true enterprise plan may make sense to cost that much. I think the gap for Vercel seems to be in the in-between stage. They have plans that are super cheap or free for small hobby projects, and the expensive enterprise plan. Not much in between for when you're growing.

The other dilemma for them seems to be in capturing true enterprise customers...if you have those resources, you might just decide to build out your own dev ops/infra team instead of paying big markups on AWS/Cloudflare bills.

[leros]

To your first point, I think you have to start valuing your time when analyzing the cost. If you have a small growing SaaS, is spending $100-200/mo for hosting really a big deal? Think about the cost of your time. I will gladly pay that kind of hosting cost to not have to spend time doing devops on my small product. I'd rather spend that time on feature development or marketing.

I think your second point is debatable. We used to spend something like $50-100k a year on Heroku which is technically way overpriced, but hiring even a single devops person to move us to AWS would have been much more expensive and introduced all sorts of risk. I think a medium sized company is fine paying $100-300k to something like Heroku as long as the offerings are fitting the architectural needs. And Heroku is AWS so you can always use some AWS services alongside your Heroku stuff.