article thumbnail

Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

For SaaS businesses that target smaller SMB customer segments, gross retention is typically in the mid to low 80’s with net expansion in the ~105% range. This is why the consumption players (Snowflake, Mongo, Confluent, Azure, AWS, etc) so more variability in the macro slowdown. Do you have ARR or ERR?

AI 183
article thumbnail

4 Traits of Fast-growing SaaS Companies

OpenView Labs

AWS and other infrastructure providers have been using UBP for nearly a decade. Simpler segmentation approach : By bucking the good, better, best seat-based pricing model, a single price point can be used to satisfy cost-conscious SMB customers as well as mid-market/enterprise businesses.

article thumbnail

When Does Open Source Make Sense for a Business?

OpenView Labs

The answer likely depends on your market segmentation, as freemium may ease adoption friction for SMB/mid-market companies. Are you targeting enterprise or mid-market/SMB? The cloud-managed services attract the lower end of the market and make it possible for these businesses to address the SMB/mid-market segments.