We assumed that skyrocketing prices were put to rest decades ago alongside disco fashion and feathered hair. But 2021 saw the U.S. Consumer Price Index climb to 7%. It is an unpleasant reality that inflation is back and shows no signs of abating any time soon.
Continued inflation poses particular risks for business-to-business (B2B) enterprise software developers. Why? Because leaders in high-margin businesses like software are often not as sensitive to margin reductions as those in industries with lower margins. For example, a software business that sees 75% margins fall to 72% will not feel the same impact as a company that drops from 20% to 17%.
