When I changed our slogan to “We know the cost of doing business”, I’m not joking. It literally costs a fortune. This was a light month so far as compared to the last one when we had insurance and other yearly payments.
When I said I could liquidate BeerCo and buy a Ferrari in my last post, I wasn’t kidding. Just our intellectual property registrations and backgrounds on projects are worth enough for that. When people say they’re going to hire a 3rd world coder on RAC and get them to code Google for 15k, I look and I laugh. The cost of doing business is incredible in Canada, and to some extent the US. It’s a real reality check. Even the little grocery store you have on the corner of your local street streams tens or hundreds of g’s.
Step back and really think about the cost of creating a search engine, Facebook clone or whatever, and how much goes into that, before you think “hey, big deal, I can do that” and try to sell it to a risk capital person with forecast numbers you pulled from last week’s bingo on your business plan. Exit capital is getting thin. The time you put into a business is worth more than anything else.
UPDATE: I posted this to emphasize the costs of doing business in IT. We are TINY. We are the littlest of little people. Our budget is literally NOTHING compared to most software companies. Our net yearly earnings is less than the salary of a single Microsoft employee(they have 75k employees). The whole 3rd world thing without spending millions on infrastructure for training is complete nonsense for businesses that need scalable dependable solutions with structured support. Use your brain when you see articles written about these types of ventures. 99% of the articles posted about internet ventures don’t make sense if you apply them to the real world and that’s the test they ultimately have to pass.
TechCrunch reports that some copyright infringement software similar to Sergey Brin’s COPS system sweeps 100M indexes per day.
“Attributor is already indexing 100 million Web pages a day (15 billion total so far), but it is not a keyword index. It looks for bigger blocks of content. Right now, it can handle only text. Images are in beta.”
Ours does like 1 million per 2 days on 10MBPS in our little office with a cable modem and a Cisco router and most of those are false positives. When we switch to 100MBPS full duplex Dec 1, it will be slightly better, but still sucky. 10x better would mean 10 million every 2 days or 5 million per day. False positives are stored though so they are not indexed again on the next sweep.
I’m jealous of those with 1GBPS+ lines. It’s just not fair. I’m afraid the best we’re going to be able to do at launch is 100MBPS unmetered on our AYBABTU(all your base are belongs to us) server.