Re:Why you should build an open-source startup
by rick888 on Friday May 20, 2011 @03:59PM
(#2569221)
"Our accounts sell at $12, $29 and $99, which is usually much cheaper than setting it up on yourself and running your own server. We even have switchers that used to host their own version and came to our online version."
If I want to run a competing business and I have more money for advertising, servers, and employees, I will not only have an advantage over you, but I now don't have to put any time into R&D.
Re:Why you should build an open-source startup
by forensic on Friday May 20, 2011 @03:43PM
(#2569150)
So you're saying make it very hard to install, very hard to maintain, and run on very expensive hardware.
Yep, that sounds like the business model we all know and love. Apache proved it works.
Re:Why you should build an open-source startup
by michokest on Friday May 20, 2011 @04:13PM
(#2569275)
I'm talking about making your offering better so you're the main choice, not adding crap to your open-source offering so it's harder.
Re:Why you should build an open-source startup
by jasonlotito on Friday May 20, 2011 @04:03PM
(#2569240)
See Mozilla v.s. Netscape.
If this formula is true, then users will pay for your service instead of doing it themselves. We have seen this pattern consistently.
Our accounts sell at $12, $29 and $99, which is usually much cheaper than setting it up on yourself and running your own server. We even have switchers that used to host their own version and came to our online version.
This is also being the case with many Wordpress hosting sites. Multi-tenancy brings an economy of scale that allows you to keep good margins while being cheaper than hosting it yourself.