Half of every SaaS dollar goes to cloud rent-seekers
The Infrastructure Behind Agentic Finance, with Shashank Yadav and Greg Osuri of Akash Network (Fraction AI)
“You would see a lot of these financials of a lot of SaaS companies — on an average, about 50%, every half of every dollar you pay was going to a cloud provider for the services. And in some cases like Asana… about 60 to 70%… I think like Netflix was 70%… and the margins were 60, 70% for these cloud providers… The access to the cloud should be open, and the software that governs cloud should be open. It should be built by the people that use it.” — 00:05:46
Context: Origin story — “the idea that total cost of ownership is going to be lower on the cloud was just a fallacy”; Amazon as “a giant rent seeker” killing open-source business models.