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.
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