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April 2022
Product Led Growth
Hi Paul

Welcome to The Cirrostratus Group April newsletter.

The Product Led Growth approach to SaaS products and companies continues to gain momentum in the industry. Not all SaaS businesses are conducive to a PLG strategy but there is increasing evidence that the approach can be used in more and more of them. Many resources are available to help understand this type of strategy.

Darktrace, the Cambridge, UK based security software provider, has many characteristics of what I believe is the future of many SaaS businesses. AI powered SaaS can potentially revitalize your existing products or become an entirely new product for you.

Paul Ressler
The Cirrostratus Group 

Product Led Growth

Product Led Growth (PLG) has continued to gain momentum in the SaaS industry. Gainsight, the customer success and product experience software company, focused their entire 2021 fall customer conference on PLG. OpenView Venture Partners, the SaaS venture capital firm, has been advocate of PLG for a long time. This is a great interview with their managing partner on the topic. ProductLed is a community of SaaS businesses sharing PLG information and best practices.


I found this article intriguing since it talked about examples of SaaS businesses that are not what you would think of as classical PLG businesses but they are taking steps toward PLG. Many of them are security software companies where things like virality, free trials and freemium is not the usual practice. If these types of businesses are finding value from PLG maybe yours can also?


You may find several of the following resources useful if you either have a PLG business or are considering moving in that direction. Metrics and software tools are important to any PLG product strategy. One of the important aspects of PLG is how to achieve product virality and I found this article on that topic helpful.


Darktrace
Darktrace, the Cambridge, UK based cyber security company is a very innovative and successful SaaS company. At this point they are of significant size and they recently won the Best Use of Innovation in Business Award from the UK business magazine Management Today. They have a unique approach to security monitoring using self learning AI that understands the usual state of their customers network and applications as a baseline, detects threats using AI, gives alerts and takes remedial action.

The product is delivered using a SaaS model and can be used on both cloud and SaaS applications and infrastructure. They have also used innovative SaaS concepts, especially for the security market, such as free trials and have many of the characteristics of a PLG company.

Some of the characteristics of the customer problem they solve are very large datasets, constantly evolving data, the need for real time analysis and the need for real time solutions. Cyber security is not the only customer problem like this and as I said in my introductory note, I believe that we will see many more of these types of AI powered SaaS solutions in the future. Darktrace is a good example that I thought you would find informative.
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