Startup Technology Expenses
One aspect of a software startup that cannot be escaped is money must be spent on technology and development of technology. Whether this is a good or bad thing depends on if you ask the engineer or the accountant. My general rules of thumb are:
- Purchases that help people do their jobs better or faster are worth paying for.
- Before spending money on something look for an open source alternative that is cheap or free. Often you will find something better or only slightly inferior to the commercial item.
- If you are going to spend money on something, the price-to-substance ratio is important.
And now a smattering of thoughts and plugs for each rule of thumb in the context of our company that is full of my personal opinions. I do realize that the earliest days of a startup largely must ignore most of this list. For example, when you don’t have an office yet (and everybody works from their homes) you don’t really worry about getting comfortable chairs, good machines, etc. for that office.
Purchases that help people work
- Screen real estate is important. I used to think this meant 2 screens but have refined this to mean total resolution. With my macbook pro and spaces I went from using 2 computers and 3 monitors to just 1 laptop and I feel more efficient now. I like to give 2 monitors to any person that wants one - especially engineers, designers, and QA.
- Good chairs are worth paying for. I’ve worked places in the past that gave their engineers hand me down garage sale garbage to sit on. The nature of a software company means people are going to spend a lot of time sitting and the chairs need to be good enough that people don’t notice them all day (and often longer given the nature of startups). Aerons are great if you can get a deal on them but there are solid options in the $200 - $300. CWC sells better quality furniture at the best price.
- Don’t skimp on workstation hardware. I personally think the mac path is worth the premium for developers. On a per-item basis the price is virtually equivalent but given Dell’s willingness to haggle and price slash (especially if buying multiple items) a premium does remain. I think it is worth it.
Open Source
- We use Java and I think it is better than .NET and it is free. You can build it on Windows/Linux/Mac and you can deploy it to all 3 as well. I think PostgreSQL is better than SQL Server (and MySQL). The Microsoft lock in has never made any sense to me and I feel the Java community is a great place in that the number of unqualified engineers is relatively small and it is full of extremely qualified people. Java also scales vertically or horizontally very, very well. It has the whole 10,000 frameworks/libraries to choose from “problem” that .NET does not have but that is okay in my opinion. We went with Spring/Hibernate/DWR and it has worked out great.
- PostgreSQL is fantastic. The developers are accessible and helpful and the community is strong. We’ve run it up to a 1TB database and it handles it just fine. You obviously have to run it on a reasonable machine as load increases but it scales vertically wonderfully and there are addons for replication. Check out Slony and/or Mammoth Replicator if you need that replication, we haven’t yet. Visit this site for installing Postgres on your local mac workstation.
- Linux is the way to go for servers. I don’t think the Linux/Dell combo can be beaten on the server side.
Price-to-Substance Ratio - Some Examples
- IntelliJ IDEA is worth its cost. It is magical and exceeds a plugin-ridden eclipse install for features out of the box and I think the editing experience and source control interaction are superior.
- Despite stability issues I think the Leopard incremental upgrade to OSX was worth it for productivity overall. Spotlight and Spaces have changed my workflow completely.
- Dell provides a fantastic ratio here. I would strongly recommend them for server hardware, especially their latest models. Solid architecture, solid raid controllers, RAM, etc. If you go with Dell get in sync with a Small Business team. It will save you money and streamline the process as you get to talk to the same people every time. Their business lines of laptop (Latitude) and desktops (Optiplex) are also solid.
- Good consultants and contractors are worth their rates for focused, time-constrained assistance. You have to be careful though because there are a large number of unqualified people posing as consultants and contractors that aren’t worth the time it takes to arrange a contract. If you find somebody you can work with and does a good job keep using them as needed.
- Parallels is worth its very manageable price for providing IE6/IE7 testing to mac-using developers. See this post for help setting up the free VMs provided by Microsoft for doing this testing.
- FlexBuilder isn’t worth the cost. When I used it a long while back it was $700+ with charting and had marginally more functionality than notepad2. Following that link, it looks like they are pumping Flex 3 now. The fact that Flex 2 has profound issues makes this especially troublesome.
- Flex Data Services pricing defies all reasoning. $20k per CPU. Same for pretty much any other product that charges per-CPU. If anyone knows of ANY per-CPU product that is worth paying for let me know. I recently priced out a better WYSIWYG editor for portions of our product and they wanted pricing per CPU for a text editor.
- And finally, I think sharp, qualfied engineers that you can interact with in person in the US are superior to any offshore team. When you consider the time differences, communication barriers, and general lack of quality offshore I believe a 5 man team of people that know what they are doing and work together here could out perform a 50 man team of offshore cube farm drones. I have 3 specific experiences (admittedly not that many) working with offshore teams. 2 ended in utter failure to complete the task, and 1 was bailed out of before it got too far along because even the onshore PM/BA assigned were completely clueless and ineffective. I feel like the offshoring development companies live in an alternative universe where you just keep a neutral look on your face through meetings and shuffle out inferior product making fixes until the customer is too frustrated, tired, or so accustomed to the low quality that they start to believe the software is good and consider the project a “success.”
So there you have a smattering of my thoughts. I expect to elaborate on many of these items in separate posts in the future. You can likely tell by the tones which items I find most interesting and/or alarming.