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They could still have paid him the $100K as part of the R&D of the App.

I would bet you $100 Delta offered that and more.

I'm willing to bet they did offer him some $$ for the App. He probably asked for $X. Delta countered with $Y.They couldn't come to an agreement so conversations ended and Delta built the same kind of app in-house. Then the guy sues them.

Agreed.

I work for a company that sells a SaaS product, it's not unlike many others, but we win sales based on how flexible / well we integrate with our customer's wonky systems.

What our application does is roughly the same as anyone else's ... but for many customers ease of integration with their systems is the make or break point.

This is a good point. I am currently consulting for a F100 healthcare company, and everything they do is driven by compliance. It's the first and last thing that gets talked about in almost every meeting.