His post, A Startup in the Cloud, captured an accelerating trend with big implications. We’ve heard plenty about all the web programming advances that allow 1-2 founders to launch a web 2.0 site quickly — remember Jason Batiste, Frank Astor and Brian Breslin’s $500, 2-week WeblogWire launch? The other exciting trend is the growth of inexpensive, hosted productivity apps allowing founders to go beyond launching a site, to truly running a business with a superior cost structure.
This reminds me of the entrepreneur/VC reference to building companies with Other People’s Money (OPM). In this case, you’re leveraging Other People’s Servers (OPS) — and you benefit from the economies of scale (not to mention cut-throat SaaS pricing). Securing OPS is a lot easier than OPM, and the benefits can be significant. Peter is building wdgtbldr with an OPS approach, leveraging CRM, conference calling, analytics, email, forwarding, fax, forums, wikis, accounting, calendar, code control, campaigns, and QA — all for less than $400/month. Amazing.