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7 Powers with Hamilton Helmer
Acquired
The Importance of Switching Costs in ERP
A place where they can be especially strong is when they become embedded in a company process. So if a SaaS model has really good switching costs, boy does that help. If there's just switching costs and you never buy anything more, it doesn't matter. Because it's in those additional transactions. And so that's when you look at ERP companies, why they acquire so many different things because these are different tools they can interact with.
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