In the blog post on the topic "In software products or services - how can you tell the difference?" it was discussed which features characterize software products and individual solutions and how they differ. The decision whether an individual solution or a product is purchased for a specific purpose ("Buy or Build Decision") depends on the individual case.
The following four points explain why it is essential to use product providers in the field of AI applications, if they are available in the relevant segment. These arguments serve as orientation and as an introduction to a discussion about software solutions.
The service provider finances research and development through the revenues from customer projects. Most of this money is spent on special customizing and on developing the technology for the product. It is certain that the investment will directly benefit the customer.
A product provider invests in product development in advance from external or internal resources. The other sales revenues are used to further develop the product and for customer service. In addition to technology and product features, this also includes the further development of general customer solutions, from which new and existing customers will automatically benefit in future without additional costs.
The products have many more active customers and users due to the sales mechanisms and customer structure. As a result, the features of the product and the UX and UI are continuously validated and developed. This is particularly reflected in a high stability of the software and better customer support.
Product providers enable their customers to exchange experiences with other customers. The protective mechanisms from project or individual business are not necessary, because the product is offered unchanged for many customers. In addition, customers influence the further development of the product within the framework of the exchange of experience and benefit from the experience of other users.
In addition to clear pricing, these are the most relevant points for choosing product vendors with AI applications.