A: Hey yubarajtpa,

Great question and completely valid concerns especially given how some very successful LTD video conferencing solutions that have launched on AppSumo in the past have shut down quite dramatically.

While our current MRR is healthy, we believe a deeper look into how we provide KYZON Space as a service will provide a better reflection of our long-term sustainability than a simple MRR metric could. Since MRR as a metric can fluctuate and can be influenced by competitive or economic factors outside of our control.

Let's talk about what actually contributes to our operating costs and how we approach each. The five main areas that contribute to our operating costs are as you pointed out, server infrastructure, storage, bandwidth, but also surprisingly, AI and similar services along with bolt-on service subscriptions.

Server infrastructure despite being a fixed cost, we split into two types of servers, ones that handle live data (the video, audio and collaboration), and ones that handle information request data (website page or file opening). We use different secure providers and in different parts of the world for the different types of servers and that helps significantly reduce our server infrastructure costs. Combined with dynamically launching new servers when needed and closing servers that are idle, we have significantly less server costs compared to other providers.

Storage contributes only a small part of our operating costs at this stage. We store all of our user data in secure Amazon Web Services servers located in Sydney Australia. When storage costs increase in the future, we will be more efficient with our storage centre distribution, that will help manage costs. Until then, there's no real advantage.

Bandwidth is without a surprise, a major operational expense for any video calling provider. While we're not immune to bandwidth costs, we do 3 things differently. We optimise for the overall experience as opposed to setting resolution records. That means we only display the resolutions that you would notice depending on your screen size and that significantly reduces our bandwidth compared to streaming video at a steady 1080p for all devices/participants. We manually adjust where our secure servers are running from to take advantage of differences in regional bandwidth costs. Finally, we manage our own video, audio and collaborative technologies without relying on service contracts with third party services like Agora or Dyte.

AI and other services that just wouldn't be sustainable. We want to be the best platform, providing every feature under the sun but we know, and you likely also know, that wouldn't be sustainable for LTDs. So our approach to features, is to only include useful features that we know we can sustain. A great example of this is AI. Costs for AI models are still too expensive for us to provide within limits that would actually be useful to our customers. Imagine you're in the middle of an important meeting and suddenly your AI assistant tells you that you're out of credits (because we had to apply a credit limit) and promptly leaves. We imagine that would be quite frustrating and not very useful. So for AI specifically, we are looking at ways to implement them usefully and sustainably, but until then, we just simply wouldn't provide the service in a bid for long term sustainability.

Finally an unexpected operational cost that other platforms often overlook for readiness to market is bolting on services. Nowadays you can skip developing a lot of features and opt to bolt on that feature as a service through third party APIs. An example would be using a service like Agora or Dyte for our video and audio technologies. While we could've been market ready months earlier, it would very quickly be unsustainable on any type of LTD. We can't exactly provide a video collaboration platform where participants can't see, nor hear each other. What we do differently is that we simply develop most of our features, opting to rely on bolt-on services only for features that do not have a compounding cost with each new customer. An example would be our Notes feature for jotting things down during your Space meetings, where the costs for providing that feature wouldn't compound with each new customer.

While no business can promise they'll survive to the end of time, I believe breaking down our approach to providing a sustainable lifetime service, will provide customers like you with some confidence in our long-term viability as a business. On a final note, significant part of our revenue from life time deals will go into marketing and business development efforts to ensure we are growing as a business.

Hope that provides some transparency into how we operate differently from other video conferencing providers and the basis on which we are comfortable offering LTD plans.

Let me know if there's anything else I can help clarify and appreciate the interest :)