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▲ flowerlad 2 hours ago

Commodity products can't demand high profit margins. Supermarkets typically have 1% to 3% net profit margin. SaaS often has 70% to 85% profit margins. Data centers hover around 15%. You don't want to sacrifice a high profit margin business in order to gain share in a low profit margin one.

▲nonethewiser 2 minutes ago | parent [-]

>Supermarkets typically have 1% to 3% net profit margin. SaaS often has 70% to 85% profit margins

Different types of margin. 1-3% for groceries is net, 70-85% for software is gross.