The unprofitable SaaS business model trap
It doesn't matter what business you are in, if you aren't turning a profit on each sale, you won't make it up in volume. In fact, volume will kill you fast.I remember when Sony was selling the PS3 at like a $200+ loss at launch. I was surprised that Microsoft didn't take a couple billion dollars and buy PS3's. It would have cost Sony hundreds of millions of dollars and would have made the PS3 a money sink hole for even longer. Microsoft had enough money to probably put Sony out of business doing this.Obviously, Microsoft could have got in a lot of trouble for attempting such a strategy, but the point is simple - an unprofitable business model makes you vulnerable, especially a growing unprofitable business.If it don't make dollars, it don't make sense.