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Sorry if it's not really appropriate to ask this question on this website.

The web application is targeted to software companies with at least two developers in the team and not to freelancers, who wish to implement agile methodologies.

We're basically trying to implement WordPress' business model which is to offer an open-source, self-hosted version of the web app. and also to create a commercial service for companies who do not wish to host the application themselves.

Would you rather pay for the service (given the fact that the price is ideal for your company) or host it for yourself?

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Would you rather pay for the service (given the fact that the price is ideal for your company) or host it for yourself?

Yes, organizations pay for service in the cloud. My main driver for on premise hosting is related to security. If sensitive information is at play then I prefer to not host off site.

Your business model

I don't want to put a damper on your startup, but have you taken a serious look at what products are already out there in this space?

It is extremely competitive and the market is already saturated with some top performing applications that are targeted at agile teams. To name a few:

  • Atlassian
  • Pivotal Tracker
  • versionone
  • Rally Dev
  • Mingle

On that note, some of these applications are created by some of the top "agile" companies in the world. What makes you think you can even compete against these products?

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  • I'm fully aware that it's a competitive market, hence the business model I'm trying to implement and need feedback for.
    – feketegy
    Jan 7, 2012 at 9:02
  • "What makes you think you can even compete against these products?" - Question: Who would have thought that after McDonald's and Burger King took complete control of the burger fast food market that a company like "In'n'out Burgers" would have a chance to enter the market? One of the values and principles of being agile is to have courage (not being naive, though, either). Books like "The Four Steps to Epiphany" by Steve Blank help understand how to develop customers. There are many different ways to enter a market. Just my two cents.
    – Manfred
    Jan 8, 2012 at 18:43
  • @John, I completely agree with your comment. I was simply pointing out in a blunt fashion that you need to have your ducks in a row before entering a highly competitive area.
    – Jesse
    Jan 8, 2012 at 20:18
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To answer your question for the purpose of a data point: yes, I recommend services in the cloud when possible (security issues/sensitivities being one reason to bring SW in-house).

But much like Jessie's answer I would really question an attempt to enter this market given the wide array of mature applications and services already available (not to stifle innovation, but a new player really needs to bring some serious differentiation/value added to the table!).

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  • One being the sensitive info as you've said, the other being the ability to customize the web app. Why should I model my company around a software process, it should be the other way around which the downloadable version should satisfy.
    – feketegy
    Jan 7, 2012 at 10:51
  • I'm not sure there are already enough and the right products with the right feature set in this market. How many software engineers are there? How many of them are using any of the tools Jessie is listing? Of those who are not using any of these (or similar not-listed ones) what are the reasons they are not using them? Is it lack of features? Is it the price? Is it lack of support within the company? There are a gazillion tests that can/need to be conducted before it is possible to conclude whether or not there is a market for a new entry.
    – Manfred
    Jan 8, 2012 at 18:48
  • @feketgy of course! I think the reason I left that out of my response is because for some reason PM-related apps are things I've typically run right out of the box, unlike just about everything else. That's kind of odd, now that I think about it.
    – jcmeloni
    Jan 8, 2012 at 20:21
  • @John I agree with your statement as well; I added that comment to my response to the actual question only because it was a pretty sharp gut reaction. I hope we see more good, solid, differentiated, and valuable entries in this space -- hosted app or not.
    – jcmeloni
    Jan 8, 2012 at 20:23

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