With SaaS you mostly give away the chance to benefit from the near zero marginal cost of software. The vendor probably shares the benefit of the marginal cost via lower prices, but at some scale of users and some price per user, the SaaS customer will end up getting a bad deal.

The problem is, you'd be foolish to run your own thing in the early days of a company. It's only when you've succeeded and scaled that it becomes a problem. You survived long enough to need to scale in part by keeping costs low and one way you did that was by using SaaS services instead of building and/or running versions of those tools yourself. That was smart.

As the business grew at least one or two of those SaaS services got so entwined into the daily operations of your company that there is now no way to replace them without a lengthy, risky, and expensive migration project.

The SaaS problem is a negative side effect of your success.

edited - a typo and a word change

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