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Or the Cliff Note’s version: Open Source & CloudComputing (led by Amazon) drove down tech startup costs by 90%. With more competition in early-stage many VCs are investing smaller amounts at earlier stages. The series started here if you want to read from the start.
We spoke about my interest in cloudcomputing, digital media and mobile. If I’m in GroupMe’s shoes (and I’ve never met the founders) I think I’d be a seller at the price reportedly paid by Skype. Yes, the competition going forward will be strong. It’s about 10 minutes long.
IBM’s planned $34 billion deal to acquire open-source software maker Red Hat is a hefty price to pay to give its cloudcomputing business a shot in the arm. In some ways, the biggest software acquisition of all time could be a yawner.
These two trends had a major impact on the computing industry from 2000-2005 but the effects weren’t yet felt by the VC industry. The Emergence of “Open Cloud&# Infrastructure. The biggest change in the software industry beyond open-source was “open cloud.&#. I find this strange. And maddening.
www.pitchtheangels.com) Join Tech Coast Angels members and other start up investors at the 5th Annual Los Angeles Fast Pitch Competition. Joyent - An Enterprise Class CloudComputing Company funded by Intel Capital, provides the most comprehensive cloud solution available today. Don't miss it!
Cloudcomputing and the open source movements have brought down the costs of starting a company by more than 90%. Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. They compete on features, price and execution.
Perhaps it should come as no surprise that the cloudprice wars have flared up once again. After taking a brief hiatus amidst nervous tensions, competition between cloudcomputing vendors has reached a fever pitch in the past month. The massive price cut is only part of the story, however.
Google) were initially based on open source elements, then refined to make it work reliably at huge scale, clearly demonstrating the relevance of open source for cloudcomputing. If you haven't already subscribed yet, subscribe now for free weekly JohnGreathouse.com articles! The earliest mega-scale web services (e.g.,
Good credit, bulk purchases, or cash payments may qualify you for a lower price. If you think you are paying too much for your product or service, shop around for a more competitiveprice and ask your vendor to match it. Take advantage of the Cloud.
Conventional wisdom in most companies is that “the competition is the enemy&# – it’s the rallying cry to dig deeper, get more features out the door, issue press releases citing differences and attack the competition’s weaknesses in sales presentations. A healthy respect for your competition will serve you well.
On the other hand, the biggest winners will turn out to be much larger than the prices people paid for them and this will happen faster than at any time in human history. However, to be a great VC you have to hold two conflicting ideas in your head at the same time. dot-com bonanza. We aren’t going to win every great deal in LA?—?there
I have other areas of interest & competence such as cloudcomputing and document management given my background. If that bond isn’t there or if it feels like I’m in a bidding process for the highest price, I might as well be Wells Fargo. Not by dropping price & quality – they don’t have an advantage there.
The VC market has right-sized (returned back to mid 90′s levels & less competition). Public-company tech investors creates competition in late-stage financings and these investors can afford to be less price sensitive if they choose. We’re all socially connected (so great businesses spread faster).
With open source software (LAMP stack) and cloudcomputing infrastructure it just wasn’t that expensive to get your company going and founders just wanted to raise less money. Entrepreneurs want less cash because they want to control dilution and preserve exit options at lower prices. What exactly is seed funding anymore?
The buzz words of SXSW Interactive 2010: cloudcomputing, social, on-demand, sharing, collaboration, Entrepreneurism / Monetization CloudComputing, monetization, Startup. . How UX and the Cloud are Transforming Software. Entrepreneurism / Monetization CloudComputing, Entrepreneurism, SaaS. .
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