(1/8) The best, most succinct, description of network effects in SaaS that I’ve ever heard:

Good companies only have one vector on which to monetize, which is selling software.

Generational companies have two vectors. Software contracts and net-new users added to the network.

(2/8) The dirty little secret of SaaS is that software is rapidly becoming commoditized. It’s too easy to build

Network effects are how you build a defensible moat around your business

Marketplaces are how you monetize those network effects.

Let’s look at $ADBE as an example

(3/8) To my count $ADBE has five marketplaces:
- Software: Integrations + Apps built for $ADBE ecosystem
- Services: Onboarding, training etc
- Talent: Hiring people who know Adobe
- Assets: Buy and sell creative assets
- Education: Resources to Teach with Adobe

(4/8) Software Marketplace: App Exchange.

$ADBE has 3 Clouds - Creative, Experience, Document.

2 types of activity. Integration of existing apps, but also apps built specifically for $ADBE. Rev split is 90/10.

$ADBE is stickier the more it integrates w/ everything else.

(5/8) Adobe Solutions Partners

$ADBE offers services by thousands of Partners in every region of the world. Everything from training, onboarding to integrations and more.

1) It’s not feasible for $ADBE to deliver these in house
2) Customers get regional, specialized support