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Why Tailscale's Business Model is so successful?

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Tailscale’s Company Overview

Tailscale is a technology company that specializes in providing a secure, peer-to-peer networking platform. The company's mission is to make networking simple, secure, and scalable. Tailscale's technology uses the WireGuard protocol to create a secure network connection between devices, regardless of where they are located. This allows for seamless and secure communication between remote teams, making it an ideal solution for businesses of all sizes. Tailscale's platform is designed to be easy to set up and manage, with no hardware or infrastructure required, making it a cost-effective solution for businesses. The business model of Tailscale is based on a subscription-based software as a service (SaaS) model. Customers pay a monthly or annual fee to use the service, with pricing based on the number of devices connected to the network. This model allows for scalability, as businesses can easily add more devices as they grow. The company also offers a free tier for personal use, which can help attract potential business customers by allowing them to trial the service. As for the revenue model, Tailscale primarily generates income through its subscription fees. The company offers different pricing tiers to cater to businesses of varying sizes, from small startups to large enterprises. The pricing tiers are based on the number of devices a business needs to connect, providing flexibility and scalability. In addition to the subscription fees, Tailscale also offers premium features and services at an additional cost, providing another stream of revenue. The company's revenue model is therefore a combination of recurring subscription income and additional revenue from premium offerings.

Country: California

Foundations date: 2019

Type: Decentralized

Sector: Technology

Categories: Software

Tailscale’s Customer Needs

Social impact:

Life changing: affiliation/belonging

Emotional: provides access

Functional: simplifies, integrates, connects, reduces effort

Tailscale’s Related Competitors

Tailscale’s Business Operations


An additional item offered to a customer of a primary product or service is referred to as an add-on sale. Depending on the industry, add-on sales may generate substantial income and profits for a firm. For example, when a customer has decided to purchase the core product or service, the salesman at an automotive dealership will usually offer an add-on sale. The pattern is used in the price of new software programs based on access to new features, number of users, and so forth.

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

Guaranteed availability:

Guaranteed availability is a property of a business system that attempts to maintain an agreed-upon level of operational performance, often uptime, for a longer time than is typical. The idea is often linked with terms such as high availability and catastrophe recovery.

Infrastructure as a Service (IaaS):

Infrastructure as a Service (IaaS) is a subset of cloud computing that offers on-demand access to shared computing resources and data to PCs and other devices. It is a paradigm for ubiquitous, on-demand access to a pool of customizable computing resources (e.g., computer networks, servers, storage, applications, and services) that can be quickly provided and released with little administrative effort.

Software as a Service (SaaS):

Software as a Service (SaaS) is a paradigm for licensing and delivering subscription-based and centrally hosted software. Occasionally, the term on-demand software is used. SaaS is usually accessible through a web browser via a thin client. SaaS has established itself as the de facto delivery mechanism for a large number of commercial apps. SaaS has been integrated into virtually every major enterprise Software company's strategy.

Technology trends:

New technologies that are now being created or produced in the next five to ten years will significantly change the economic and social landscape. These include but are not limited to information technology, wireless data transmission, human-machine connection, on-demand printing, biotechnology, and sophisticated robotics.

Tiered service:

Users may choose from a limited number of levels with gradually rising price points to get the product or goods that are most appropriate for their requirements. Such systems are widely used in the telecommunications industry, particularly in the areas of cellular service, digital and cable television, and broadband internet access. Users may choose from a limited number of levels with gradually rising price points to get the product or goods that are most appropriate for their requirements.

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