Comment by revnode
1 day ago
They've been at this for a while. They do have offerings you subscribe for and pay monthly. They have also consistently offered an option for each of those offerings to bring your own or self host. They've earned my trust.
>>they’ve earned my trust
Boy I hope Broadcom didn’t hear that…
Recently they removed the option to take certain types of backup locally (for the Network app). Now it only does it to the cloud, for those who allow this. It’s these small things that make me cautiously pessimistic that long term Ubiquity won’t pull the rug from under the customers.
Once you invest thousands in network equipment or cameras you’re less likely to jump ship when they start sneaking things in. And this is long lived equipment, not the kind you anyway replace every couple of years. So that’s a relatively strong lock-in.
It is their number one selling point vs. the competition. The space has already a dozen vendors with a healthy product mix.
It's definitely where they fit now, but are Ubiquiti's goals really always going to be the cheapest option when there are already a dozen other vendors who have demonstrated how to get higher margins & subscription revenue?
The usual trend that the smaller upsets compete on cost until they get higher and higher volume and work their way into higher and higher end markets. Ubiquiti 10 years ago was mostly doing volume for small niche ISPs or prosumers at home, now it's got enormous gains in SMB & products aimed at enterprise. I don't think they'll just stop at where they are, focus will keep shifting to wherever they think they can grow to rather than where they've had success before.
They would be shooting themselves in the foot in the long term. I was surprised to learn that Ubiquiti is a publicly traded company, but also the CEO and founder owns the mass majority of the shares, so he is not beholden by shareholders wanting to enshittify the company for the same of increased stock prices.
Anything can be sold to PE.
Ubiquiti is a giant publicly traded company... Read about the CEO, this won't happen.
Sure. But all you can do, when deciding with whom to do business, is base your decision on what they have already done. It's not viable to refuse to do business with a company on the basis of "they might one day get bought by PE and introduce customer hostile changes".
I mean, in the NAS space with a plethora of open source alternatives, that is a viable stance.
2 replies →
I tend to agree with you.
In my opinion, as long as the majority of their profits come from people continuing to buy the self-host devices, it is fairly unlikely they'll ever stop offering those devices. Why change a working business model?
Yes, subscription models are enticing for that recurring revenue... number must go up, right? /s
If a majority of your sales are not in subscription products though, I think it would be foolish for a business to blow off its own leg trying to chase that particular dragon.
Then again... businesses have made dumber calls in the past out of nowhere...
They can sell subscriptions to people who buy them and allow self contained as possible. For securities sake requiring off-site storage of a security system is a non-starter.