Why Going Deep Beats Going Wide

Focusing on depth over breadth allows SaaS companies to scale efficiently, maintain product integrity, and innovate faster without succumbing to costly customizations

Photo by Ned Daniels on Unsplash

Most SaaS companies fall into a common trap: they tweak their software or make massive process changes for every potential client. While this might help close deals in the short term, it’s a terrible strategy for long-term scalability. Instead, the most successful SaaS companies focus on depth — perfecting a core product and offering extensibility rather than bending their architecture for every customer request. In 2025, as AI-driven SaaS products become the norm, going deep is more critical than ever.

Depth vs. Breadth in SaaS

What Does “Depth” Mean?

Depth means focusing on a core competency and refining it to near perfection. It means solving problems comprehensively within a specific domain while allowing users to configure or extend features rather than forcing custom development for each customer.

What Does “Breadth” Mean?

Breadth, on the other hand, means trying to accommodate every possible use case by continually expanding or modifying the product’s scope. This leads to bloated, fragile software, high maintenance costs, and slowed innovation.

Examples of SaaS Companies That Prioritize Depth

1. Datadog (Observability & Monitoring)

Datadog is a prime example of a SaaS product that focuses on depth. It specializes in observability — logs, metrics, and traces — but doesn’t attempt to be an all-in-one IT solution. Instead, it offers a robust API and hundreds of integrations, allowing customers to plug Datadog into their existing tech stack without expecting core modifications.

• Pros: Highly scalable, retains product integrity, enables rapid innovation.
• Cons: May not fit niche enterprise needs without third-party customization.

2. Snowflake (Cloud Data Warehousing)

Snowflake focuses on being the best at cloud-based data storage and processing. It doesn’t try to be a business intelligence tool or an ETL solution. Instead, it integrates seamlessly with tools like Tableau, Looker, and dbt, letting companies build on top of its strong foundation.

• Pros: Highly optimized performance, vendor-agnostic scalability, clear market differentiation.
• Cons: Requires external tools for visualization and reporting.

3. Stripe (Payments Infrastructure)

Stripe dominates online payments by offering a powerful, developer-friendly API. It does not customize its backend for every business, but instead provides configurable features, allowing businesses to tailor their payments experience within Stripe’s structured framework.

• Pros: Seamless integration, scalable across industries, security and compliance maintained at scale.
• Cons: Businesses with highly unique payment needs may need additional workarounds.

Examples of SaaS Companies That Struggle with Breadth

1. Salesforce (CRM & Business Applications)

Salesforce has built a massive ecosystem of CRM, sales automation, and business applications, but at the cost of extreme complexity. The platform is so customizable that companies require entire consulting teams to implement and maintain it. This results in high technical debt and slow adoption for new customers.

• Pros: Attracts large enterprises needing deep customization.
• Cons: Expensive to implement and maintain, slows down innovation due to excessive feature sprawl.

2. SAP (Enterprise Software)

SAP provides end-to-end enterprise software but is notorious for being rigid and difficult to implement. Since it tries to accommodate every enterprise use case, it has become cumbersome and slow-moving in an era where agility matters most.

• Pros: Comprehensive for large enterprises with legacy requirements.
• Cons: Complex, expensive, and requires heavy customization.

Why Depth Wins in 2025

In 2025, the SaaS landscape is more competitive than ever, with AI-powered automation redefining product capabilities. However, depth remains crucial because:

• AI thrives on well-defined, structured domains. A focused AI-powered SaaS can provide deep insights and automation within a specific niche rather than being a generalist tool with mediocre intelligence.
• Customers expect self-serve and modular experiences. Modern SaaS buyers prefer configurable solutions rather than waiting for custom feature development.
• Security and compliance require focus. The more customization a SaaS company offers, the harder it is to maintain security and compliance standards at scale.

Freight SaaS Example: Flexport

A freight management SaaS like Flexport builds all the essential logistics processes that clients need but does not rebuild its software for every shipping company. Instead, it offers integrations and APIs so businesses can tailor the system to their needs without altering the core infrastructure.

• Pros: Faster deployment, scalable business model, retains focus.
• Cons: Might not fit highly unique logistics needs without third-party customization.

Key Takeaways

• SaaS companies that focus on depth — like Datadog, Stripe, and Snowflake — scale more efficiently and maintain product integrity.
• Companies that prioritize breadth — like Salesforce and SAP — struggle with complexity, slow adoption, and high costs.
• In 2025, AI-powered SaaS is best positioned for success when it optimizes workflows within a clear, defined domain rather than attempting to be a one-size-fits-all solution.

If you’re building or scaling a SaaS company, optimize for depth. Offer robust APIs, configuration options, and a clear product vision. Companies that focus on deep expertise rather than trying to serve everyone will be the ones that thrive in the long run.