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SaaS margins are terrible

by

Sammy Abdullah

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com

ionally while the variable costs of SaaS are very low (hosting, servers, etc), the fixed costs are very high, especially for engineering talent and developers. Given the speed at which technology becomes obsolete, the hiring of engineering/dev talent never really ends as each company has to constantly improve and evolve its product. Even worse, the fixed costs are all human talent, making cost cuts/layoffs really painful for morale, culture, and productivity of other personnel.

Sammy Abdullah

Managing Partner & Co-Founder

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