Cost Structure - What We Invest In, and Why

Zontally’s cost structure reflects the kind of company we are building.

We are not optimising for short-term margin extraction or low-touch scale at any cost. We are building a durable, AI-native, enterprise-grade platform designed to solve one of the hardest problems in modern organisations: turning strategy into execution at scale.

That choice has clear implications for where we invest — and where we do not.


AI infrastructure as a core cost of delivery

As an AI-powered strategy-to-execution platform, a meaningful portion of Zontally’s cost of goods sold is driven by model inference, orchestration, and data processing.

Unlike traditional SaaS platforms, where marginal usage costs approach zero, AI systems incur real and variable costs as customers derive value. Every insight generated, every execution risk surfaced, and every recommendation produced represents computation, inference, and intelligent processing.

We treat these costs not as a burden to be minimised, but as a direct investment in customer value. The more insight, clarity, and decision support Zontally provides, the more cost we incur — and the more value customers receive in return.

This reinforces our commitment to a pricing model that aligns revenue with execution value, ensuring that AI capability remains sustainable, scalable, and continuously improving.


Research and development as a strategic commitment

Zontally is, at its core, a technology and product company — and our cost structure reflects that reality.

We expect research and development to be one of our largest ongoing investments, encompassing:

  • product engineering
  • AI model development and optimisation
  • platform architecture and scalability
  • security, reliability, and enterprise readiness
  • applied research into strategy execution patterns and operating models

This is not incidental spending. It is a deliberate choice.

We are explicit in our intent to reinvest a significant percentage of revenue back into R&D over the life of the company. Strategy-to-execution is not a static problem; as organisations, markets, and technologies evolve, so must the systems that support them.

Sustained innovation is not optional — it is foundational to maintaining relevance and leadership in this category.


Customer acquisition aligned to enterprise value

Because Zontally is not a product-led growth business, customer acquisition costs are necessarily higher on a per-customer basis than in self-serve SaaS models.

Our buyers are senior enterprise leaders. Our sales motion is consultative. Our go-to-market model prioritises depth of engagement over volume of sign-ups.

This means investing in:

  • experienced enterprise sales talent
  • thought leadership and executive-level content
  • private events, roundtables, and leadership forums
  • pre-sales expertise capable of engaging at a strategic level

We accept higher CAC as a natural consequence of selling to the C-suite — and we design the business model accordingly.

Critically, this is balanced by:

  • high average revenue per customer
  • long-term contracts
  • enterprise-wide adoption
  • and strong expansion potential as execution maturity grows

We license organisations, not individuals. As a result, the economics of customer acquisition are evaluated at the account level, not the user level. When done correctly, this creates a healthy and scalable ratio between CAC and lifetime value.


Discipline, not austerity

Across AI infrastructure, R&D, and customer acquisition, Zontally’s cost structure reflects a clear philosophy: we invest where it compounds long-term value.

We are deliberate about avoiding:

  • bloated feature development without strategic relevanc
  • indiscriminate marketing spend
  • and short-term margin optimisation that undermines product quality or customer trust

Instead, we focus on building a company with:

  • strong unit economics at the customer level
  • sustainable AI-driven delivery
  • and the capacity to reinvest continuously in innovation and customer success

In doing so, we align our cost structure with our purpose: closing the gap between ambition and execution — not just today, but for the long term.


In summary

Zontally’s cost structure is shaped by three deliberate commitments:

  • Delivering real AI-powered value at scale
  • Sustained investment in product and execution innovation
  • High-quality, enterprise-grade customer relationships

These costs are not incidental. They are the foundation of a business designed for credibility, durability, and meaningful impact.

This is part of the series on our Open Business Model