Oltmann: Margin compression will hit public SaaS companies within three years
Xander Oltmann · Xander Oltmann, Commodity Capital: Downfall of SaaS & Uprising of Vertically Integrated Monopolies · Sourcery with Molly O'Shea · Feb 1, 2024 · at 8:56
Xander Oltmann, GP of Commodity Capital, discusses high churn rates and software commoditization impacting public SaaS companies.
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“In the span of two to three years, I think what we're really going to start to see is this narrative really catch up with publicly traded companies that already have these like massive user bases. so I think it'll be interesting to see what happens over the next two to three years with publicly traded SaaS companies.”
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More from Xander Oltmann
Oltmann: OpenAI is attempting to build its own chip factories
“OpenAI is currently out in the market now trying to actually build their own chip factories and develop their own chips internally, which is a total shift away from historically what software companies have done.”
Oltmann: Hadrian boasts 70% gross margins and top 3% SaaS growth
“Hadrian's got like 70% gross margins and they're growing in the top three percent of all SaaS companies”
Oltmann: Cheaper software is shifting tech from SaaS to vertical integration
“My thesis around the dropping cost of software and how that's leading towards a shift away from pure play SaaS and leading more towards vertically integrated companies.”
Oltmann: The spike in GPU prices and demand is temporary
“We might see GPU spike in demand, you know, Cause that to increase in price for the time being, but I think that's just a moment in time for right now.”