Understanding Proof-of-Concepts in Software: How Saphera Handles PoCs

When a potential client approaches a software company like Saphera, they often want to ensure that the proposed solution will work for their needs before committing to full-scale development. That’s where a Proof-of-Concept (PoC) comes in. A PoC is a small-scale project designed to test whether an idea, solution, or technology is feasible and will deliver on the intended objectives.

At Saphera, we view the PoC phase as an essential step in the development lifecycle, especially when dealing with complex or custom software solutions. In this blog post, we’ll dive deep into the purpose of a PoC, how it works, and how we handle PoCs, including when and how we charge for them.

What is a Proof-of-Concept in Software Development?

A proof-of-concept is a preliminary model or demonstration used to evaluate the feasibility of a software project. The main goal of a PoC is to determine whether the proposed solution can be developed in the way envisioned and whether it will meet the core requirements of the client.

A PoC doesn’t need to be a fully functioning version of the product or service. Instead, it focuses on key aspects of the solution that need validation—such as technology choices, integration with other systems, or specific features.

How a Proof-of-Concept Works

At Saphera, we approach a PoC with a structured process that allows both us and the client to evaluate the project’s potential. Here’s how a typical PoC works:

1. Define the Scope: The first step is to clearly define the scope of the PoC. We work with the client to identify the most critical features or aspects of the solution that need to be tested. This is often a small subset of the overall project but includes the most essential components to prove the viability of the idea.
2. Develop a Minimal Prototype: Once the scope is clear, we develop a minimal prototype or model. This prototype focuses on delivering the core functionality and is not a polished version of the final product. The goal here is to test feasibility, not to deliver a finished product.
3. Test Feasibility: The PoC helps us (and the client) evaluate whether the proposed solution is technically feasible. This might involve testing integrations, evaluating performance under certain conditions, or ensuring that the technology stack will work together as planned.
4. Evaluate Performance: We assess the performance of the PoC to see how it behaves in real-world conditions. This can include everything from load testing to checking compatibility with existing systems or platforms.
5. Gather Feedback: Once the PoC is ready, it’s presented to the client for feedback. This is a collaborative step where both sides discuss how well the solution meets the expectations and what, if any, adjustments need to be made.
6. Decide on Next Steps: After evaluating the PoC, we work with the client to determine whether it makes sense to move forward with full-scale development. If the PoC proves successful, it often leads directly to the next phase of development.

Should You Charge for a Proof-of-Concept?

Now comes a critical question: Should you charge for a PoC? The answer depends on several factors, including the complexity of the PoC, the potential value of the client, and the resources required to deliver the PoC. At Saphera, we’ve developed a flexible approach to handling PoCs:

1. Free PoCs for Strategic Clients: In some cases, we offer free PoCs, particularly when we have a strong, ongoing relationship with the client. Offering a free PoC is seen as an investment in strengthening that relationship. We typically use this approach when the PoC is relatively straightforward or when collaborating with clients with whom we share a long-term partnership. There are also instances where we offer a free PoC to new customers. However, this depends on various factors, including the size of the organization, the complexity of the project, and the long-term potential of the partnership.
2. Paid PoCs for Complex Projects: If a PoC requires significant time, effort, or technical complexity, we charge for the work. Complex PoCs can take weeks or even months of effort, and we believe it’s important to reflect the value of that work. Charging for a PoC also ensures that the client is committed to the process and isn’t simply exploring options with no intention of following through.
3. Discount or Credit Toward Future Development: At Saphera, when we charge for a PoC, we often provide a discount or offer to credit the PoC cost toward the full project if the client decides to move forward. This way, the client sees the PoC as part of the overall project rather than an additional expense. It also serves as an incentive for the client to continue with the development if the PoC is successful.

Pricing a Proof-of-Concept

If we decide to charge for a PoC, how do we determine the cost? Pricing a PoC depends on the scope of the work, the complexity of the project, and the estimated time and resources needed. Here’s how we break it down at Saphera:

1. Scope and Complexity: The first factor we consider is the scope of the PoC. Is it a simple test of a single feature, or does it involve multiple integrations, advanced technologies, or significant backend work? The more complex the PoC, the higher the cost.
2. Time and Resources: We estimate how much time and resources will be needed to complete the PoC. This includes developer time, project management, testing, and any specific tools or platforms that may need to be used. Based on this, we calculate a fair rate for the work. Since Saphera typically charges $120 per hour for custom software projects, we apply a similar rate for PoC work.
3. Risk and Uncertainty: If the PoC involves a high degree of technical risk or uncertainty, this can also affect pricing. For example, if there are unknowns regarding the technology or if we anticipate potential roadblocks, we may adjust the price to account for the added complexity.
4. Client Relationship: As mentioned earlier, we also consider the client relationship when pricing a PoC. If this is a strategic client with the potential for ongoing work, we may be more flexible in pricing, possibly offering a lower rate or providing a discount.
5. Length of the PoC: Some PoCs take a few days to complete, while others may require weeks. At Saphera, we structure our PoC pricing based on the expected timeline. For example, a simple PoC that we estimate will take under 40 hours may be billed as a fixed-price project, while more complex PoCs may be charged hourly.

How Saphera Handles Proof-of-Concepts

At Saphera, our focus is on delivering value to our clients while ensuring that the solutions we propose are technically sound. Whether the PoC is free or paid, our goal is always to provide clarity and confidence that the proposed software solution will meet the client’s needs.

Here’s a typical breakdown of how we handle PoCs:

• Consultation and Scoping: Before any PoC work begins, we have an in-depth consultation with the client to understand their needs and objectives. This helps us define a clear scope for the PoC.
• Development and Testing: Our experienced developers work on building the minimal prototype that reflects the core functionality needed for the PoC. We rigorously test the PoC to ensure it performs as expected.
• Feedback and Iteration: We work closely with the client throughout the process, incorporating feedback and making adjustments as needed. This collaborative approach ensures that the client feels involved and confident in the direction of the project.
• Final Presentation: Once the PoC is complete, we present the results to the client, highlighting the success of the solution and discussing any next steps.
• Moving Forward: If the PoC is successful, we transition into full-scale development, often applying the PoC cost toward the larger project to give the client a sense of continuity.

Final Proof-of-Concepts Thoughts

At Saphera, we see the proof-of-concept phase as a critical part of the software development process. It allows both us and our clients to ensure that a project is on the right track before committing significant time and resources. Whether we offer a free PoC to secure a strategic client or charge for a more complex, resource-intensive PoC, our approach is always transparent and flexible.

For businesses considering a PoC, it’s important to evaluate the complexity and potential value of the project. A PoC is an excellent way to mitigate risk and ensure that your software solution will perform as expected. If you’re interested in learning more about how Saphera handles PoCs or if you’d like to discuss a potential project, feel free to get in touch with us and share your PoC vision.