Forever Free, page-2

Hey guys,
I asked few questions in regards to the introduction of forever free Parse on Buddy.

1. Does cost of maintaining servers for Parse on Buddy increase as the number of users increase? (Assuming we don't monitise the data)

2. If answer to the above question is Yes, what are the plans in regards to the Free Riders ?(Customer's who does not generate any revenues but causes expense to us)

3. Are we able to sell the datas continuously? Wouldnt buyers move on to new data sets after few purchase?


Below was the response from Dave.

1. Yes, the cost of running Parse goes up as consumption goes up, but not necessarily users. All apps are different, and an app with a lower number of users might actually consume more services than an app with a larger number of users. However, consumption of services is a proxy for compute power and memory needed to service those functions.
2. We’re making Parse on Buddy entirely free. We’re doing that because we can monetize the data that usage of Parse generates, but we need a minimum volume/rate of data to monetize effectively. That means that there are no “free riders” in this new model, because we are able to monetize the aggregated data set. Yes, it is true that smaller apps will contribute less to the data that we’re monetizing, but they also cost us less to run, so it largely works out.
3. Yes, once we’ve passed a minimum threshold, we can sell the data continuously. Remember the data changes by the minute, so what customers are buying is a subscription to a particular data set, delivered periodically – daily, hourly, weekly, etc… The nice thing about this market is that there’s no perfect overlap, so buyers will buy as much data as they can find – it isn’t the case that just because they bought from supplier A that they wouldn’t also want to buy from supplier B. If a buyer is finding value in the data, then they will keep buying it.

Thanks

IMO DYOR