How does PCF pricing work and what do those revenue numbers mean in terms of margins?
The thing that bothered me with the model was it disincentives modern microservice architectures. One big monolith cost less than lots of smaller components.
It may have changed since I last saw the details.
I hope for Pivotal's sake that the eye-popping price is not crucial to their growth forecast. If it is, I think 2019-20 will be difficult for them. They just don't have the market share to force these prices down customer's throats.
The question is: are the $800k customers getting good value for that subscription, or are they looking at projected costs and thinking "we better switch to a competitor before this gets out of hand".
(Though in enterprise sales, even amazingly poor vendors often get to re-bill for several years, until the exec who signed off on the subscription moves on and it becomes politically possible for people internally to admit to each other it was a stupid decision to sign up in the first place... So perhaps 2 years growth here is only telling the "sales capability" side of the story, not the "ongoing value provided" side...)
And the other similar version: tightly fought procurement between two opposing vendors with different internal "sponsors". Winning vendor's ability to deliver is stymied at every opportunity by losing sponsor or their internal supporters. Then the few years of abysmal results happens in spite of winning vendors capability and efforts - same outcome plays out.