> If your SaaS can’t compete on the service part

No the problem is that it cant compete on the hardware part sometimes

Lets face it even if it something is open source, chances are that the most contributions/time are still spent by the person making it or the saas provider in this industry.

Imagine that someone goes ahead and launches a cheaper version of their saas and people go use that, since that person isnt having his time invested in the software as much as the original person and thus is willing to undercut him because his investment/returns expectations are very minimal whereas for the original saas it can be very high (writing good quality software which costs some developers real time and even real money)

Okay, I've imagined that. Am I supposed to sympathise with the end users in this scenario or?..