August 2020 Summaries

Software-as-a-Service (SaaS) fatigue is prompting many B2B software startups, particularly those targeting technical users, to consider launching as open source for its unique advantages. Open source encourages greater user feedback and iteration by building on platforms like GitHub, where users are accustomed to raising issues and suggesting features, unlike the traditional SaaS feedback mechanisms of emails and calls. The transparency of open source code not only demands better coding practices, which can simplify onboarding and foster a robust community, but also attracts top engineering talent and enhances hiring pipelines. Open source projects also offer enterprises the ability to inspect and self-deploy code, easing security concerns and expediting adoption. The collaborative nature of open source allows users to actively contribute to bug fixes and improvements, building trust and community goodwill. While these benefits are significant, they may not apply to software focused on non-technical users, though open source still offers several other advantages worth considering.

Over the past two weeks, PostHog has focused on enhancing quality through user-facing tweaks and numerous bug fixes and refactoring, introducing new features like an integrated data pipeline with Segment and improved Slack notifications. The platform now offers consolidated analytics features for quicker access to data insights, a more interactive toolbar, and enhanced graph annotations for better data tracking. Significant bug fixes and performance improvements have been implemented, including support for Tailwind CSS in heatmaps, improved security for session cookies, and various UX enhancements. PostHog is also exploring more scalable database solutions, planning to build on ClickHouse for its Enterprise version due to increased demand from high-volume deployments. Additionally, the team has welcomed new members, including a Technical Writer and a Growth Engineer, while seeking full-stack engineers with a passion for hedgehogs. Users are encouraged to provide feedback in exchange for PostHog merchandise.

GitLab, one of the world's leading open-core companies, has greatly influenced PostHog's all-remote culture and product style, with its founder, Sid Sijbrandij, offering insights into GitLab's business strategies and growth. GitLab, bootstrapped initially with 100K users, realized the commercial value lay in its source-available version, reaching $100M ARR by 2020, and encourages focusing on this area over hosted solutions due to competition. The company emphasizes a clear separation of free and paid product features, with product managers determining the allocation of engineering resources. Marketing was initially not a priority for GitLab, relying instead on organic community adoption, though they acknowledge that early-stage companies might benefit from simultaneous marketing efforts. Sid advises against blindly following GitLab's path, emphasizing the importance of learning from their experiences while acknowledging the unique aspects of each company’s journey.