Why enterprise software development companies fail trying to create SaaS

The only thing to invest in is the future.

7 de mayo del 2020

In my ten years of developing systems for governments and large companies, I found something dramatically different in the SaaS world with the rest of the industries. 

When you work in the enterprise world, the customer has one or many responsible people for the project. Still, there is not an owner, and most of the time, the software is to optimize an internal process.

And that is a game-changer. 

The reason why large outsourcing companies around the world fail to release a SaaS product is the team-building process and the relation with the owner who has a dream, not always a plan.

When you hire a large company, with many certifications, protocols for every single stage, procedures, and a tremendous legal framework, you are hiring experts. But also you are acquiring bureaucracy, periodically contract revisions, price increments, and a lot of paradigms, and that is frustrating for the owner who wants to deliver fast.

That kind of software development company is the perfect match for corporations, and the world needs them, but not for a SaaS.

In the SaaS world, paradigm is the enemy, is a world of out-of-the-box thinking, where every single company is fighting to differentiate their product from the rest in an already saturated environment.

You need to build a team, a real team. Your designers and engineers must have the feel of belonging to your brand and product and not to the company that signs the checks. You must have a flat rate, no matter how many new requirements you have every day. Your team must be brave enough to speak freely and to try new things., that kind that may possibly fail, but if they don't then BOOM!, you are the new unicorn in the valley. 

People under the right culture is better than people under a contract.

The owner in the SaaS world is often the CEO and has one or more investors, customers, and partners who have high expectations about the project. The team must be agile enough to fulfill those expectations by designing simple solutions, keeping the plan clear, and delivering fast.

My advice is to find a stable company with proper Q&A procedures, those that will staff a new team exclusively for you, looking for long term relationships. 

Hire people who come to learn from the market and create in consequence instead of experts who came to teach or solve.

There will be a point when you‘ll become big enough, and you will need to call those experts, those enterprise companies, to solve specific problems.

Better to start with a team as lean and motivated as possible and grow like a snowball acting in consequence of the market, not paradigms.

“The only thing to invest in is the future.”

Eric Applebaum (played by Zach Mills), Mr. Magorium's Wonder Emporium




Learn more about my SaaS development Specialized company.

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Why enterprise software development companies fail trying to create SaaS