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How Small Tech Start-Ups (And You!) Can Get Even Smaller
By Bizbox
There was a fascinating article published yesterday on our partner site, Slate, about the new world of tech start-ups. Takeaway: innovations in open-source software, cloud computing, and other things that may be broadly grouped under the "Web 2.0" rubric have lowered overhead so dramatically that tech start-ups can survive for much longer, and in much less hospitable times, than ever before. But the article has lessons on lowering operating costs for just about any small business that relies heavily on computers--which is to say, for just about any small business.
The article begins by bemoaning the current situation, in which fewer larger companies are willing to buy start-ups--the author notes that Google's proposed buy-out of Digg just went south. But no matter: these small Silicon Valley start-ups can get by because their costs are ever moving towards zero due to vastly shrinking computing costs.
"But strangely, no one's panicking. Despite the doldrums, despite the fact that tech may not get out of this slump for several quarters, startups and venture capital executives are barely breaking a sweat. Here's why: In the last 18 months, new developments in open-source software and cloud computing have made it cheaper to run a Web company than anyone thought possible. Just a few years ago, startups had to build their own IT services and administrative software, and the costs would soar into the millions. Today, tech leaders can just rent prepackaged software from Microsoft. Operating costs have plunged so low that companies vested with just a few million bucks can easily afford to wait until the good times roll around once more."
But you don't have to be Digg, or some even smaller company that makes applications for Facebook or the iPhone, to get in on the cost-saving action. Cartier is now on MySpace; cheaper alternatives to Microsoft's software suite abound. What are you waiting for? Lower your expenses, improve your computing, and be a part of the Web 2.0 revolution.
Comments (0)August 1, 2008 11:35 AM
