due to architectural decisions not prioritizing cost, this sets a very high opex floor, which has downstream consequences on pricing structure, which constrains the target demo to price-insensitive buyers such as large institutions

this, in turn, influences the product backlog

iterated over several years this can effectively lock in corporate strategy and make it downright impossible to target smaller consumers, as the entire organization is used to a certain way of working, with a certain amount of overhead and flex budget built into the process

this overhead opens the door for smaller leaner competitors to swoop in & scoop up large swaths of the market that ur product was inaccessible to; since there are typically many more of these consumers, this gives your competitors a treasure trove of a market research opportunity

this huge pool of many low-value clients, while harder to scale a business with, does enable one to iterate much faster and with a higher risk tolerance, which has accumulated benefits for R&D, allowing these competitors to challenge you for the higher-value clients down the line

this is a major part of why I'm generally more philosophically aligned with the B2C SaaS startup approach, as it's much easier to scale up to target large enterprises than to scale down to target smaller consumers

having many small users drastically increases your learning rate

the practical upshot is that if it's feasible for ur problem space, to start off by targeting the low-value market segment, investing in quicker iteration & lean ops early on; you'll be more likely to arrive at an optimal equilibrium prior to locking in strategy during scaling