RaaS Operations 101

First, AI agents are likely to lead to new go-to-market strategies for SaaS companies. With potentially fewer humans in the loop, there is likely to be a further decoupling of seats/users and contract value. To capture value, LLM applications will need a new scaling factor for pricing: variable value-based pricing is a plausible solution.

Moreover, ... See more

In fact the BYOC model has some tension and perverse incentives. Most of their billing models are priced as the number of nodes under management. Their way to increase revenue is to add more nodes to your cluster! An optimization that shrinks node count will drop revenue. The SaaS provider has the opposite incentive - it optimizes its stack at ever... See more

While some funds have traditionally offered a variety of services under the same umbrella, we will likely see much more granular pricing of services being offered via service DAOs, and likely at far better unit economics than funds that offer a bundled set of services under their ‘platform’.