SaaStr · 2012-10-30 · 4964d

The Cloud Infrastructure Problem: Why SaaS Still Lacks Reliable, Turnkey Solutions

Jason Lemkin argues that despite years of cloud computing advancement, SaaS companies still lack a reliable, fully-managed cloud solution that eliminates the need for expensive TechOps teams. He uses the AWS outage affecting Pinterest and Airbnb as a case study, highlighting how cascading failures from memory leaks can bring down multiple services simultaneously. Lemkin contends that SaaS entrepreneurs shouldn't need dedicated TechOps infrastructure until reaching $20M in revenue.

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Metrics in this report

Data Center Failover Time

5minutes

maximum

required time to spool up virtual servers in secondary data center

TechOps Team Requirement Threshold

20M ARR

minimum

SaaS company revenue at which dedicated TechOps becomes necessary