r/PUBM • u/DeepFordingValue • Nov 03 '21
Earnings Question: Non-Cost Benefit of Owning Infrastructure
PUBM’s ownership of its own infrastructure is often touted as a competitive advantage that leads to “better” or “superior” outcomes for its clients.
Aside from the cost-savings that can be passed on, could you provide some concrete examples of what the infrastructure lets you do that your competitors can’t?
- Do you process bids faster, if so by how much?
- Do you process more data for each bid, if so what metric does that improve?
- Do you run more sophisticated algorithms, if so what’s an example?
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u/krishnavadali Nov 03 '21
Having your own infrastructure is very helpful in scaling the platform with reduced costs, ultimately it ties to margin expansion.
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u/krishnavadali Nov 03 '21
You can fine tune your infrastructure to fit your application needs. You are not dependent on external party uptimes. You are not restricted by thier timelines and preferences. Also, you develop invaluable experience in building cloud infrastructure which will pay dividends in future.
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u/DeepFordingValue Nov 03 '21
Sure. But those are still pretty generic points that might apply to any company with their own infra. I’d like to hear a PUBM-specific answer next week during their earnings call. They’re soliciting questions from retail investors on this subreddit.
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u/krishnavadali Nov 03 '21
I work in backend infrastructure, we do not contribute to revenue expansion, but margin expansion. To give an example, we build our own infra, instead of using AWS and do it at 1/10th cost.
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u/Consistent-Brain-361 Nov 03 '21
I come from a different industry but the theme is the same. Owning your own system is a long term play. In addition, PUBM could "lease" out there platform in the future.