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Bnoopy: It’s a great time to be an entrepreneur
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"Bnoopy
An entrepreneurship blog.
« Personal - Joining the EFF Board
Main
June 29, 2005
It’s a great time to be an entrepreneur
There’s never been a better time to be an entrepreneur because it’s never been cheaper to be one. Here’s one example.
Excite.com took $3,000,000 to get from idea to launch. JotSpot took $100,000.
Why on earth is there a 30X difference? There’s probably a lot of reasons, but here are my top four. I’m interested in hearing about what other people think are factors as well.
Hardware is 100X cheaper In the 10 years between Excite and JotSpot, hardware has literally become 100X cheaper. It’s two factors – Moore’s law and the rise of Linux as an operating system designed to run on generic hardware. Back in the Excite days, we had to buy proprietary Sun hardware and Sun hard drive arrays. Believe me, none of it was cheap.
Today, we buy generic Intel boxes provided by one of a million different suppliers.
Infrastructure software is free Back in 1993 we had to buy and continue to pay for maintenance on everything we needed just to build our service -- operating systems, compilers, web servers, application servers, databases. You name it. If it was infrastructure, we paid for it. And, not only was it costly, the need to negotiate licenses took time and energy. I remember having a deadline at Excite that required me to buy a Sun compiler through their Japanese office because it was the only office open at the time (probably midnight) and we needed that compiler NOW.
Compare that to today. Free, open source infrastructure is the norm. Get it anytime and anywhere. At JotSpot, and startups everywhere you see Linux, Tomcat, Apache, MySQL, etc. No license cost, no maintenance.
Access to Global Labor Markets Startups today have unprecedented access to global labor markets. Back in 1993, IBM had access to technical people in India, but little Excite.com did not. Today, with"
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