I spoke to a contact at a large software reseller who told me they sell
$S and
$CRWD to the SMB market. He could not tell me much about any product differences between the two but said they are selling more
$S than
$CRWD and sometimes
$S is sold as a replacement for
$CRWD.
Since there was no understanding by the sales rep as to why
$S is better I can infer a few things.
$S is winning on price only with smaller clients who are more price conscious. Larger enterprise clients (Fortune 500 and governments) which lean to
$CRWD are less price conscious and more concerned with product fit, scalability and reliability of the platform.
$S is looking to grow at all costs, sacrificing margins (profit and FCF) to a customer set that is more apt to churn while
$CRWD focuses on higher margin, large enterprise clients that tend not to churn based on price alone.
Anyone have thoughts on this? Do you think this is accurate?