Marginal Cost Explained: The KPI Every SaaS CFO Cares About (But You Rarely Track)
Ask a SaaS team how they measure cloud efficiency, and you’ll hear familiar things. Total cloud spend. Average cost per customer. Maybe a breakdown of spend by service. All useful, but rather wobbly. Now ask, “What does it cost you to serve one more customer?” That’s when the room goes quiet. And that’s often where cloud economics gets really wobbly. Because that number, your marginal cost, is what actually determines your margins. Not your total cloud bill.