My advice to Startups ... dont use Microsoft. While most tech Startups are already wise to this, I see non-tech Startups starting life on Microsoft platforms (or other license based platforms). Dont do it. All the old reasons for using Microsoft - easy to develop, easy to deploy, easy to use, better user interface are just that ... old. Today's freeware/shareware is just too compelling an option to ignore. It is free, can be customized, is massively scalable, is "cloud computing" compatible, has excellent support forums and does not cost the moon as you scale.
Most non-tech Startups start by installing Windows OS/MS Office on their PCs and then put Small Business Server on their servers. And the first application they build - either for customer use or for own use - is usually on a Microsoft platform. They reason that freeware is cumbersome and not intuitive. But times have changed. A Linux/Open Office combination on your PC is just as easy to use. And you can save documents in the open document format which makes every document compatible with MS Office. A freeware based software application today is indistinguishable from a Microsoft based application.
There are two broad challenges in using Microsoft platforms.
1) Total Cost of Ownership - for small volume users, Microsoft products are cheap. But as volume grows Microsoft platforms cost exponentially higher. By the time realization dawns it is too late to migrate out of Microsoft.
2) As Microsoft shrink wrapped software becomes obsolete, so does your software application. (While I cannot claim to be able to see the future and predict accurately, I think there is consensus that the era of "pay upfront, buy software licenses based on the number of PCs/processors" is certainly over. ) At which time you will have a software application that is obsolete. And if you have software that your customer uses, your customer most likely will be paying on a pay per use basis but you will be buying from Microsoft upfront. And while your customer will pay you less when they buy more, Microsoft will charge you exponentially more as you buy more leaving you with a completely unviable model.
So dont get into the trap ... do freeware now. Once a company goes down the path of freeware, employees become familiar with it making it possible to use freeware on a sustained basis. There are people who say "no large enterprise runs freeware - they all use Microsoft". To which my answer is "Ask Google".
Mohana,
ReplyDeleteFirstly congrats on starting your own blog!!!
well I somewhat agree to your reasoning/assessment on using shareware/opensource technologies instead of licensed products. But when it comes to using/moving applications on to Cloud "TRUST and SECURITY" are big concerns today for CIO's. Recent incident related to twitter's company confidential information being hacked, apparently information was stored on Google's cloud infrastructure does make a strong case towards the concerns related to security.
So I would agree to most part that if non-tech startup has some IT expertise in-house than using OPENSOURCE technologies would save cost upfront and add to the bottomline.
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Vinaya thanks for writing. I started a blog on startups but have been blogging otherwise at www.mohan-kannegal.sulekha.com
ReplyDeleteSure Trust and Security are concerns. But certainly we do not know how many companies have lost valuable information through employees losing their laptop or their pen-drive. I would argue that the cloud is far more secure than local storage. Its just that loss/theft of local storage data is never widely noticed.
Mohan,
ReplyDeleteThe battle continues, the debate goes on. I have encountered dozens of articles, discussions during social gathering, blogs and so on this topic in the past 10 years. In my opinion both Open Source is just an alternative to Microsoft and not the replacement. It totally depends on what type of Startup or business you are in. For example, Microsoft is MUST for many Startups in IT who are providing custom solution\application based on Windows technology and want a jump-start; Open Source may be sufficient for those who are in real-estate consulting, own a retail shop and so on. Advocates of Microsoft claim Open Source has just added the confusion rather than bringing down the cost, whereas opponents think otherwise. In my personal opinion, Open Source certainly brings down the upfront cost, but there is not enough talent available to support open source infrastructure. Just to add the fuel to the fire, we recently had major downtime in our operations due to couple of Trojans that made into our infrastructure due to open source monitoring application that we were using (through undocumented feature). The cost of downtime was around $25,000. As a result, we uninstalled all the open source applications and invested $15,000 in purchasing one of the leading monitoring apps.
Good Stuff Mohan, Keep the good work going on.
ReplyDeleteLooking at the feedback pouring in I must have jumped off the deep end. I wrote from my personal experience which is obviously limited! Jairam's write up was an eye opener. Venu's email again. So let me stick to what I understand ... startups, delivery, assessments. I think IT is far more complex than I first thought!!
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