Here’s what you should know about software product development vs software services development.
Did you know that a software product development project works differently than a software services project? At Ayoka, we work on both types of projects for our clients. Here are just a couple of the differentiators between the two:
There Are More Unknowns for a Software Product
In a typical custom software services project, a business is looking to build, modernize, or optimize an app for internal use. The software is intended to fulfill a preexisting and well-defined need. This makes it possible to get very specific about design and user requirements at the outset.
In contrast, when a software product is being developed that will be sold to end users outside the organization, demand is more difficult to estimate. User requirements can be tougher to figure out as well, since the proposed user persona is based on market research rather than actual business users. The design parameters may fluctuate dramatically based on feedback in early beta-testing.
For software services projects, the code that’s developed usually belongs to the client. But when a software product is being developed, there may be a licensing agreement with the vendor retaining ownership of the code. This means the vendor can license and sell the code and derivative designs to other entities.
With that being said, Ayoka rarely retains the rights to source code for software products. Our clients are usually in a quest to develop highly proprietary software that gives them a substantial market advantage—and they want to fully own it. However, a licensing agreement is something that may be up for discussion occasionally for a software product that could serve a purpose for multiple organizations in a non-competitive sector. It’s definitely a topic that clients should make sure they understand no matter where they go for custom software product development.
Do you have an idea for a custom software product? Call Ayoka at 817-210-4042 to explore your concept with the experts.