Why it is so hard to succeed with both SaaS and Consultancy
To succeed, many companies eventually need to separate the SaaS business from the consultancy.
A SaaS business needs clarity and protection. It requires a dedicated product roadmap, long-term investment decisions, and incentives that reward scale rather than hours billed. When SaaS lives inside a consultancy, it is constantly exposed to short-term delivery pressure.
By separating SaaS, the company can make cleaner decisions. Product priorities are set based on market demand, not on the needs of a single customer. Engineering capacity is invested in product quality and scalability, not in project deadlines.
Separation also creates transparency. Revenue, margins, and growth become easier to measure, which makes it easier to attract the right talent and the right investors. SaaS investors look for focus, predictability, and scale, not blended business models.
Most importantly, separation forces strategic honesty. It becomes clear whether the SaaS can stand on its own merits or whether it is dependent on consulting revenue to survive.
For many companies, splitting out SaaS is not about structure. It is about giving the product a real chance to succeed.
