[yjftsjthsd-h]

I think some of the tension is that:

> 2. FooLabs offers FooCloud, a paid, hosted, managed version of Foo for those who don't want to run Foo themselves.

> 4. FooLabs' hosted version doesn't really have much advantage over AWS and AWS has a huge base of existing customers, so it outcompetes FooLabs.

FooCloud is often run with what is perceived as excessive costs/margins, so 1. they get really poor uptake, and 2. it's really easy for AWS to undercut them.

[snotrockets]

(I'd rather not discuss the tension described and am going to be vauge on purpose, as I work on SaaS that has multiple completing services from other providers)

Some SaaS, when operated by a vendor also selling IaaS, is sold at so low cost over the IaaS, that it doesn't matter how cheaply other vendors can build on top of that same IaaS, they could never compete on price.