Comment by ngruhn
5 hours ago
I guess I don't understand "enterprise psychology" but why are auditing features worth a 50x premium? I think we're currently blasting through $1000 worth of tokens a month per dev.
5 hours ago
I guess I don't understand "enterprise psychology" but why are auditing features worth a 50x premium? I think we're currently blasting through $1000 worth of tokens a month per dev.
They aren't but both firms tell bigger/richer clients that the subs just aren't available to them no matter what. It's not a policy, it's an email that says "we're moving you onto API rates". They have no obligation to follow a systematic policy!
Because enterprises have compliance and certification requirements, meaning the enterprise is essentially held hostage by providers on price.
You could argue it's worth that much because of the value that compliance brings the enterprise, but it's just another gouging excercise. Certainly nothing unique to AI companies.
Claude "team" plans are limited to 150 seats per company. So big companies have no choice.
> I guess I don't understand "enterprise psychology" but why are auditing features worth a 50x premium?
Alternatively, one can say that the enterprise customers plus a metric shitload of VC and shareholder/investor money heavily subsidizes cheap personal plans.
It's the same playbook that Adobe used, provide cheap plans for academia and turn a blind eye towards piracy from non-commercial actors, get the young people hooked hard on Adobe's software and workflows, and they will demand that their employers purchase the nice, high profit commercial/enterprise plans.
> heavily subsidizes cheap personal plans.
They are of course are the ones paying for R&D of new models but its not exactly clear if gross margins on subscriptions are negative. It might be just normal market segmentation just like SaaS companies charging enterprise users many times more than private individuals.