In markets like higher education accessibility management, the primary buyer (e.g., a risk officer) prioritizes compliance and functionality over a polished UI. While good UX is valued, the crucial differentiator is whether the software fulfills legal requirements. The focus is on simplicity, clarity, and customizable features that solve specific compliance needs.
Related Insights
When large incumbents like Microsoft release features that seem late or inferior to startup versions, it's often not a lack of innovation. They must navigate a complex web of international regulations, accessibility rules, and compliance standards (like SOC 2 and ITAR) that inherently slow down development and deployment compared to nimble startups.
Startup founders often sell visionary upside, but the majority of customers—especially in enterprise—purchase products to avoid pain or reduce risk (e.g., missing revenue targets). GTM messaging should pivot from the "art of the possible" to risk mitigation to resonate more effectively with buyers.
AI models are commoditized, but the ecosystem of tools, services, and compliance standards is increasingly complex. The example of needing nine Azure services for only 39% NIST compliance highlights this. Companies offering a consolidated, simplified path to value will hold a significant competitive advantage.
Founders often over-prioritize non-revenue tasks like getting compliance certifications. Unless you are actively losing deals because you lack SOC 2 or ISO, you should delay it. View compliance as a task to be completed only when it becomes a direct blocker to sales, not as a box to check early on.
The most reliable markets are those where customers are legally obligated to buy. By offering services that help companies comply with regulations like the EU AI Act, you tap into a non-discretionary budget. The sales conversation shifts from "if" they will buy to "who" they will buy from.
While many legal AI tools use the same foundational models, they differentiate by offering features crucial for law firms: strict permissions, compliance controls, and integrations with proprietary legal databases like Westlaw. This 'packaging' of trust is the real product, for which discerning law firms willingly pay a premium.
MSPs often avoid selling compliance services due to their complexity and perceived liability. However, 'human risk' is a required part of most frameworks and is far more tangible and easier to sell than technical controls. It acts as a wedge, allowing MSPs to enter the lucrative compliance market with a simpler, more relatable offering.
Standalone AI tools often lack enterprise-grade compliance like HIPAA and GDPR. A central orchestration platform provides a crucial layer for access control, observability, and compliance management, protecting the business from risks associated with passing sensitive data to unvetted AI services.
For Outbound Sync founder Harris Kenney, SOC 2 was more than a sales checkbox. As a non-technical founder, the process imposed engineering discipline and best practices his team might have otherwise skipped, improving the product and covering his own knowledge gaps.
To create transformational enterprise solutions, focus on the core problems of the key buyers, not just the feature requests of technical users. For healthcare payers, this meant solving strategic issues like care management and risk management, which led to stickier, higher-value products than simply delivering another tool.
