Service and product companies typically have a different mind-set. Service-based businesses typically do more waterfall-style development. Product-based compani

Service and product companies typically have a different mind-set. Service-based businesses typically do more waterfall-style development. Product-based companies do more agile development. Service-based businesses build what the customer asked for. Product-based businesses build what the customers will ask for. While some service companies have made the transition, I think it is a very different focus and mindset. While some companies like 37signals have made transition, it is not easy for many.