As I was reading thru the ZS earnings transcript, I got the feeling the growth rate of ZS is limited by how many sales people they can hire.
The lead time for a new sale for ZS is 6-12 months for a large customer, making the sales team critical.
That got me thinking, every one of these tech companies are hiring as many good sales people as they can find.
This has to be a bottleneck in the industry right now, there can’t be many available.
Big advantage to the companies that can attract and retain the best.
And the companies that struggle, there is going to be a bad fly wheel going on.
- company struggles
- top sales folks leave for other companies with better opportunities
- company struggles further
- rinse and repeat
Not going to be easy for the ZUO or NTNX to overcome this. I’m not interested in any company that is saying there issues are poor sales execution.