Softletter100

Sales and Marketing - news, trends and best practice

John Miller, Softletter100

John Miller, Softletter100

Rick Chapman

Rick Chapman

Softletter100

Why Cost of Sales is such an important metric

Well-run SaaS company share similar gross margins with their on-premise counterparts, but warehouses full of boxes have been replaced by climate controlled server centers full of servers, much-high end monitoring software, complex rollout and version control system, and more. Depending on the complexity of its operations, a SaaS firm’s COS numbers can reach levels that were rarely seen in the on-premise years, as we’ll see in Teradata’s case. For startups, COS numbers almost never reach on-premise levels until the company is well into its post-startup phase of growth. Read more…….

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