Feature Flags Become Enterprise Infrastructure
Michael Grinich, CEO of WorkOS, on AI startups getting enterprise-ready at launch
Feature flags are becoming a bundle component, not a durable standalone wedge. In B2B software, the practical job is usually not mass consumer testing, it is turning features on for one customer, one plan tier, or one user role, which makes flags look a lot like permissions and entitlements. That fits naturally inside WorkOS, where identity, auth, org objects, and authorization already exist.
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WorkOS is using flags mainly for enterprise change management. Teams roll out a new workflow to a specific company, gate premium features by plan, or let a customer admin control access for their own users. That is much closer to RBAC and billing than to classic A/B testing.
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The standalone leaders have had to broaden well beyond simple toggles. Statsig couples flags with experimentation, analytics, session replay, and warehouse-native analysis. LaunchDarkly has expanded into experimentation, observability, product analytics, and AI configs. That product sprawl is the clearest sign that basic flagging alone is not enough.
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The revenue split also shows the difference in market shape. WorkOS was at $30M ARR in October 2025 by bundling multiple enterprise-readiness products across 1,000 plus customers. Statsig reached $40M ARR in May 2025 with a broader product growth suite, while LaunchDarkly defends a larger platform by monetizing experiments, observability, and governance on top of flags.
The category is heading toward two outcomes. Either flags get absorbed into broader stacks for identity, analytics, DevOps, or observability, or they survive as part of a wider control plane with many adjacent products. For enterprise software, the winning products will treat flags as infrastructure for permissions, rollout, and governance, not as a single isolated tool.