An article about application developer 37 Signals describes a very interesting business model. The article “Work Less, Give Your Customers Less… and Succeed Like 37Signals” talks about the culture and their market targets and product development approach using “Ruby on Rails” (framework used for Twitter).
From the article “That’s why, as products strategists, Jason and David focus on customers with smaller budgets, less bureaucracy, and fewer headaches. Most technology companies are obsessed with the “enterprise” market—Fortune 500 giants with complicated problems and big budgets. 37Signals builds software for entrepreneurs and small companies where the executives who buy the product also use the product—a market that they call the Fortune 5,000,000: “We solve the simple problems and leave the hairy, difficult, nasty problems to everyone else,” the company likes to say.”
Check out their site and products http://37signals.com/ If you have to pick one product, check out Basecamp.
What do you think of their focus? What about their business model? And their approach to product development? Any comment on products?