Startup on Other People’s Servers (OPS)

Posted by on October 18, 2007 at 10:19 am.

A came across Peter Yared’s Musings while looking for details on his latest startup, wdgtbldr. Peter previously built ActiveGrid and has some great nuggets to share the second time around.

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.

Related images: peter yared, jason baptiste, frank astor, brian breslin, saas

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