How much % revenue your saas pays for hosting/servers?

Discussions
#1

Just curious, which number is “normal”…

We’re at 1% or our revenue.

#2

We’re closer to 10%. But we are much smaller than jitbit. So far… :slight_smile:

#3

Around 1.5% here, but since it’s so low I haven’t really bothered to try optimizing things.

#4

I’m not running a Saas, but I can assume that it heavily depends on product itself - if it requires lot of storage, lot of CPU or bandwidth (for instance if product is about permanent monitoring of customer’s servers), then hosting bill could be more significant.

#5

We are at around 10% of revenue. Our business is infrastructure-heavy as we run a global Anycast network and thus have managed hardware, which accounts for a significant portion (50-75%) of that expense.

#6

We’re at around 0.8% for all of our products (some SaaS, some one-time but with server components).

#7

I will not be sharing a % of revenue, instead I will give you exact dollar amount:

  • 3 servers on low cost VPS for production - $100 / month
  • 2 mid-range instances on AWS to support development and infrastructure (build server, licence server, etc) - $150 / month
  • 4 higher-end instances on AWS in 3 regions (US East, West Europe, Pacific) for production - $1000 / month
    …
    total - $1250 / month
#8

2.1% spent in a mix of Azure resources and bare metal servers. If I include services that are absolutely required for our SaaS to work (twilio, transactional emails, etc.) the cost jumps to 4.5%.

#9

We are currently at 15% of revenue, similar to @aeden we are infrastructure heavy (in the application performance monitoring space) and I hope to get down the ratio to 10% when revenue keeps increasing.