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.

Key takeaways
  • Crossing the enterprise chasm requires sustained investment over multiple years - it’s not a quick sprint but a marathon requiring ongoing work and maintenance

  • Four key areas enterprises demand:

    • Control (admin features, permissions, security)
    • Visibility (audit logs, usage analytics)
    • Compliance (GDPR, SOC2, encryption)
    • Automation (APIs, integrations)
  • The transition requires building two parallel streams:

    • Continue developing core product features for end users
    • Build enterprise-grade capabilities for IT admins/buyers
  • Major benefits of crossing the chasm:

    • Higher revenue per customer
    • Better retention rates
    • Expanded market size
    • Increased product defensibility
    • More predictable sales cycles
  • 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
  • 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
  • Failed enterprise transitions often lead to competitors overtaking market share by serving enterprise needs better (e.g. Microsoft Teams vs Slack)

  • Success requires maintaining focus on both individual users and enterprise capabilities simultaneously rather than completely shifting focus