The Economic Times has an interesting article on how Pune based technology entrepreneurs make giant leap from services to product development, in which they’ve covered Pune based software product companies Uniken and Sapience.
“Services helped us remain profitable while gaining experience. It allowed us to ease into products without worrying about whether customers would buy what we have innovated and launched,” said Sanjay Deshpande, CEO and chief innovation officer of Uniken, which builds security software.
Set up with Rs 15 lakh, Uniken has built a user base of 10 lakh in the past five years. Deshpande estimates the company that has received initial funding of Rs 30 crore from Nexus Venture Partners will earn revenue of about Rs 620 crore in the next four years. For Deshpande, the transition from services to products was a mental adjustment as he had built up a base to ease into a product venture without financial insecurity.
And here is what Shirish Deodhar, the founder of Sapience had to say:
However, the transition is not always so smooth for many others. Shirish Deodhar, cofounder of Sapience Analytics, a company offering productivity solutions to companies, said starting a services venture first can backfire.
He first set up a services company, In-reality Software, that offered outsourced product development for US clients. “But we were totally absorbed by the services venture and couldn’t focus on our product dream,” said the entrepreneur who went onto sell his first startup to SymphonyBSE 0.99 % Services.
The second time around, he decided to focus completely on products mindful of the earlier experience. “We had to invest heavily, work on the product continually improvising it, and eventually hope that customers will want to buy it,” he said.
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