Recently I was talking with an entrepreneur that was showing me his Software-as-a-Service (SaaS) product. After a quick 10 minute demo, which was crisp and complete, he started talking about what’s next and how they were moving into an adjacent opportunity. I proceeded to ask about adoption rates, what were the “must have” features of the product, and what would the benefits be if they continued to go deeper instead of wider. The core product looked good and I didn’t buy the strategy to go broader.
Here are some reasons for going deep with a SaaS product:
- Be the best that you can be instead of just OK on a number of fronts
- Resources are limited, so use them wisely
- Deep functionality to provide specific value is much more defensible than light-weight functionality
- Specialists command much more money than generalists
- SaaS is readily integrated with third-party products via APIs such that the idea of an all-in-one suite is not going to win in the future
Whenever debating product functionality, always ask yourself if you’re going deeper or wider, and the vast majority of time the answer should be deeper.
What else? What are your thoughts on going deep instead of wide with a SaaS product?