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> 40% of their revenue is concentrated in <1% of their paid customers. Is this normal in the corporate SaaS market ?

Speaking from my experience of 6 months at a SaaS company this is about the norm.

Besides the usual 80/20 rule it gets more skewed at the top. And so even the product development was optimised to keep the top 1% happy. A ton of custom built features with hundreds of feature flags..

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The 80/20 rule is basically the power law which is one of my favorite laws. https://en.wikipedia.org/wiki/Power_law

It is also one of the most abused rules, often used to justify extremely sloppy "big picture thinking".

Yeah, but 80% of the time, the sloppy thinking is right.

I would say this is only normal/healthy if you have a freemium business model--otherwise the revenues to me seem way to skewed (i.e. very/very far away from 80/20).

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