I'm building software which solves an edge case that hasn't been accounted for in the industry I'm targeting.<p>Potential customers I've interviewed have expressed interest and willingness to pay for the solution, but some have actually requested that instead of turning it into a product, I should instead licence it to one of the big industry players so it can be properly integrated into one of the industry's standard applications.<p>Could anyone offer advice / thoughts / experiences on licensing or selling software to a large entity?
The large entity would be your <i>only</i> customer. It would control sales and dictate your income. The organization making the suggestion is not a potential customer. That's ok. It just means that the edge case is not very important to that organization.