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Back when every person in the office required their own secretary to do the work that they now do with Saas, did you call secretaries rent-seekers?

Saas is productivity growth at work. Rent-seekers add no additional productivity to the economy, they diminish it. Saas is the opposite.

Are there individual examples where Saas companies might be providing negative value? Of course (I assume somebody will respond below with one such personal anecdote).

However, in aggregate, Saas is not rent-seeking.



I'll share my anecdote for when it wasn't.

A previous employer of mine had paid 96k a year to use a client software on a per database installation basis (12k per license, 8 database installations across the company worldwide, for a total cost of 96k/year)..

However this software was a trivial CRUD app we used for dealing with CAD files. To be clear: we completely owned and managed the back end database ourselves, and just used the app as a client interface for searching/creating CAD files (which was super slow btw).

I could've created an equivalently functional client app within a week or two, that was both faster and more scalable. Doing so would have saved the company an obvious 96k a year in recurring costs, along with increased productivity. It might have taken a while longer than a week to deploy to users, but nonetheless would have alone justified my yearly salary. Additionally it wouldn't have taken 100% of my time a year to support or maintain such a client.

However, I couldn't convince managers it was worth it to rewrite it in house, despite no new features being added to the software by the vendor for over 8 years! Frankly, I'm still not sure why that was (ignorance I'd say), but I think it said how much I was respected there... so I left.

Actually, I lied - I still work there and am in the process of finding a new job. Frankly, it's stuff like this that makes me think I should just get with the times and start my own niche SaaS company and do "Rent-Seeking" to ignorant companies such as this, since they don't understand when something is cheaper to be done in house...




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