Netscope CEO Sanjay Barry's strategy is to occupy the middle ground between niche startups and giant suites like Microsoft. He argues customers want a "few core platforms," not 100 products or just one. This "Goldilocks" positioning offers a comprehensive solution without locking customers into a single vendor's entire ecosystem.
In complex deals, frame your solution as part of a larger strategic "approach" that aligns with the buyer's existing initiatives. First, gain consensus on this shared approach, then position your offering as the foundational technology that enables it. This avoids commoditization.
The stickiest software is critical but inexpensive relative to a customer's overall budget, like payroll services. This 'Goldilocks zone' makes the software too small a cost for C-suite review, yet too embedded to easily replace, creating a powerful moat.
Startups often fail to displace incumbents because they become successful 'point solutions' and get acquired. The harder path to a much larger outcome is to build the entire integrated stack from the start, but initially serve a simpler, down-market customer segment before moving up.
A successful platform strategy focuses on leverage. It provides building blocks that reduce internal effort to launch new products, while delivering a seamless, integrated experience that creates lock-in for customers. This leverage is the platform's core value proposition.
When launching into a competitive space, first build the table-stakes features to achieve parity. Then, develop at least one "binary differentiator"—a unique, compelling capability that solves a major pain point your competitors don't, making the choice clear for customers.
Large enterprises don't buy point solutions; they invest in a long-term platform vision. To succeed, build an extensible platform from day one, but lead with a specific, high-value use case as the entry point. This foundational architecture cannot be retrofitted later.
The go-to-market tool market is fragmented because sales tactics have a short shelf life, quickly rendering point solutions obsolete. The future belongs to integrated platforms that act as an "IDE" (Integrated Development Environment), allowing teams to rapidly experiment, iterate, and execute new GTM strategies.
Don't try to compete with hyperscalers like AWS or GCP on their home turf. Instead, differentiate by focusing on areas they inherently neglect, such as multi-cloud management and hybrid on-premise integration. The winning strategy is to fit into and augment a customer's existing cloud strategy, not attempt to replace it.
Palo Alto Networks evolved from a firewall company into a platform by systematically identifying adjacent, niche markets ("sliver feature industries"). They then built or acquired solutions for these niches and offered them as new subscriptions on their core hardware, consolidating billion-dollar lateral markets.
Smaller software companies can't compete with giants like Salesforce or Adobe on an all-in-one basis. They must strategically embrace interoperability and multi-cloud models as a key differentiator. This appeals to customers seeking flexibility and avoiding lock-in to a single vendor's ecosystem.