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Crossing the enterprise chasm
Learn how to successfully transition products to enterprise by building admin features, security, compliance & automation while maintaining product quality & user focus.
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Crossing the enterprise chasm requires sustained investment over multiple years - it’s not a quick sprint but a marathon requiring ongoing work and maintenance
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Four key areas enterprises demand:
- Control (admin features, permissions, security)
- Visibility (audit logs, usage analytics)
- Compliance (GDPR, SOC2, encryption)
- Automation (APIs, integrations)
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The transition requires building two parallel streams:
- Continue developing core product features for end users
- Build enterprise-grade capabilities for IT admins/buyers
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Major benefits of crossing the chasm:
- Higher revenue per customer
- Better retention rates
- Expanded market size
- Increased product defensibility
- More predictable sales cycles
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Common challenges:
- Engineers prefer building core features over enterprise capabilities
- Hard to motivate teams for “unsexy” backend work
- Complex integration with legacy systems
- Large surface area for potential bugs
- Requires deep customer research with enterprise admins
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Key recommendations:
- Start with identity/SSO integration
- Build APIs and webhooks for automation
- Focus on security and compliance early
- Ensure proper financing/runway before starting
- Prioritize based on future customers, not just current leads
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Failed enterprise transitions often lead to competitors overtaking market share by serving enterprise needs better (e.g. Microsoft Teams vs Slack)
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Success requires maintaining focus on both individual users and enterprise capabilities simultaneously rather than completely shifting focus