Software house vs software company

difference beetween software house software company

What is the difference between a software house vs software company? Let’s start at the beginning, which is why you are reading this article. Before you start working with an IT company, you need to know a little more about what to expect from external provider developers. Perhaps every IT company seems to be the same to you: a group of people sitting in front of computers coding software, fueled by coffee, and spending their free time playing computer games.

Of course, this is a stereotype, of course, in many cases it is not true – so what do companies producing software from the inside look like?

Software house definition

Software house is a company that specializes in software development. The end product are applications – those that run only on a smartphone or in a browser, or are a separate program installed locally on a computer. In simple terms: all functions written in a programming language and controlling the operation of a device or computer system on the basis of the ‘if X then Y’ dependency.

Protip: In the company full of programmers, try not to call the HTML guy a programmer. HTML (as the name HyperText Markup Language suggests) is not a programming language, but a so called markup language).

A software house product can be software on a one-time paid license, custom bridges between systems that have not been communicated with each other so far, or Software-as-a-Service (SaaS).

It is very important that the software house produces software tailored to the client’s needs. The product is strictly dependent on the client’s needs and its market situation at the time of ordering the software in the software house.

Software company – what’s the difference?

As we mentioned before, there is a difference between individual software companies. The software house creates software at the request of clients, so each project is a separate story resulting from the different needs of the client.

A software company, on the other hand, can be a company that does not only produce software for the needs of its customers, but for its own use, with product sales structures. This type of company can start operating as a startup organized around innovative software.

As time passes, the product reaches the end of its life cycle, so it is a natural move to create a new version or another program based on previous experience.

Something in between

Sometimes it also happens that a company decides to use a hybrid solution – selling software out of the box and providing programming services at the same time like a software house. In many cases, such things happen due to the team’s potential that can be used in the implementation of services for external customers.

software house or software company

Software house vs software company on the graph

However, sometimes it is the opposite process – the software house decides to implement its own product. This can happen when the IT company diversifies its business channels. In this case, we are dealing with a company that accumulates two very important features: the ability to create tailor-made software and knowledge of the market and business aspects related to software commercialization.

What to choose?

There is no better way to comprehensively understand the meaning of software development than to look at it from both a technical and business perspective. Technology should serve to the people without unnecessary surprises. Therefore, the best solution is to choose the golden mean between a software house and a software company. This will benefit both the quality of the software and its business usability. Are you ready to contact us and estimate the project?