Microsoft – which generates more than $200 billion in annual revenue – looms large over SaaS startups. The behemoth has near-monopoly power in enterprise software and has been known to use the power of bundling to win categories like messaging, video conferencing, and low-code app building. We’ve all seen the notorious Microsoft Teams vs. Slack adoption chart, haven’t we?

Going head-on against Microsoft rarely works. Software companies need to take a different approach – create a new product category that Microsoft didn’t invest in, apply product-led growth (PLG) to build products loved by end-users, or focus on a particular vertical where Microsoft can’t generate enough expertise.

Let’s explore how the right PLG strategy beats Microsoft.