From its humble beginnings as a small startup, Parallels Inc. always envisioned a new way to approach virtualized computing. The story behind Parallels dictates a company filled with dozens of innovative industry firsts introduced with every new product release over the years. This unrivaled leadership in innovation began in 2006 with the introduction of mainstream virtualization on […]
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You’ve decided to take the plunge. Your dream business is on its way to make it big and you’re scaling up rapidly. As a startup entrepreneur you’re conscious of your costs – bottom-line matters the most to you and outsourcing is the answer.
For your business, every decision that you take not only affects you immediately but can have rippling effects. It is important then that these decisions are taken after carefully considering the impact, yet you may not enjoy the luxury of time in this competitive business landscape.
As a budding business house, there are a few challenges that you will face – tight budgets, short turnaround times, robust software support, right skills and people resources, high focus on business development and competitive pricing norms. Most of these challenges will remain, but when it comes to choosing your software vendors, here are six steps that can ease your decision:
Understand your requirements
An in-depth analysis of how software is going to support your business is most critical. You not only need to understand your current requirements, but as a start-up your growth curve is exponential. You would need to have a sense of direction of where the business is headed and how your requirements will change. This will then be helpful for you to match your needs with the offerings of the vendors you screen.
Is the vendor flexible enough?
Sometimes you will have to choose between an extremely well-known name that provides you with a standard set of software offerings or an isv that is more willing to tweak systems as per your requirements. This will probably give you much more flexibility as you grow, enhance or modify your software requirements in a dynamic business environment.
How open are communication channels?
One of the biggest challenges you may face with vendors is the lack of open channels that can help cater to fast moving changes in your systems. Transparent communication channels, no language barriers and 24 by 7 customer support should be top of your list when selecting vendors.
Do they have the right people?
Do they have the right skills and people resources? Are they able to retain these people? Are their teams able to provide expert counsel to you in matters of software, emerging technologies and project management?
Confidentiality and security?
Does your software vendor provide you with a sense of peace when it comes to managing your data? Look at testimonials from other users and conduct a proper survey on how vendors manage their own security, confidentiality and look at legal agreements carefully before signing on.
Expansion capabilities and hidden costs?
Will the software vendor be able to support rapid expansion, do they have open architectures that facilitate growth and revisions? Look at all hidden costs clearly; articulate as much as is possible at the outset. But also do a professional ethics check to see that the vendor adheres to corporate norms when unwritten requirements crop up.
To know more about software vendors please click here.
Here are some choice tidbits from Drew Houston’s application for Y Combinator backing:
What is your company going to make?
Dropbox synchronizes files across your/your team’s computers. It’s much better than uploading or email, because it’s automatic, integrated into Windows, and fits into the way you already work. There’s also a web interface, and the files are securely backed up to Amazon S3. Dropbox is kind of like taking the best elements of subversion, trac and rsync and making them “just work” for the average individual or team. Hackers have access to these tools, but normal people don’t.
There are lots of interesting possible features. One is syncing Google Docs/Spreadsheets (or other office web apps) to local .doc and .xls files for offline access, which would be strategically important as few web apps deal with the offline problem.
What’s new about what you’re doing?
Most small teams have a few basic needs: (1) team members need their important stuff in front of them wherever they are, (2) everyone needs to be working on the latest version of a given document (and ideally can track what’s changed), (3) and team data needs to be protected from disaster. There are sync tools (e.g. beinsync, Foldershare), there are backup tools (Carbonite, Mozy), and there are web uploading/publishing tools (box.net, etc.), but there’s no good integrated solution.
Dropbox solves all these needs, and doesn’t need configuration or babysitting. Put another way, it takes concepts that are proven winners from the dev community (version control, changelogs/trac, rsync, etc.) and puts them in a package that my little sister can figure out (she uses Dropbox to keep track of her high school term papers, and doesn’t need to burn CDs or carry USB sticks anymore.)
At a higher level, online storage and local disks are big and cheap. But the internet links in between have been and will continue to be slow in comparison. In “the future”, you won’t have to move your data around manually. The concept that I’m most excited about is that the core technology in Dropbox — continuous efficient sync with compression and binary diffs — is what will get us there.
What do you understand about your business that other companies in it just don’t get?
Competing products work at the wrong layer of abstraction and/or force the user to constantly think and do things. The “online disk drive” abstraction sucks, because you can’t work offline and the OS support is extremely brittle. Anything that depends on manual emailing/uploading (i.e. anything web-based) is a non-starter, because it’s basically doing version control in your head. But virtually all competing services involve one or the other.
With Dropbox, you hit “Save”, as you normally would, and everything just works, even with large files (thanks to binary diffs).
What are people forced to do now because what you plan to make doesn’t exist yet?
Email themselves attachments. Upload stuff to online storage sites or use online drives like Xdrive, which don’t work on planes. Carry around USB drives, which can be lost, stolen, or break/get bad sectors. Waste time revising the wrong versions of given documents, resulting in Frankendocuments that contain some changes but lose others. My friend Reuben is switching his financial consulting company from a PHP-based CMS to a beta of Dropbox because all they used it for was file sharing. Techies often hack together brittle solutions involving web hosting, rsync, and cron jobs.
Want more detail? Read the full application.
Wired has a cautionary tale for you to read as you consider the perils as well as the promise of could computing.
New York startup DigitalOcean says that its cloud server platform may be leaking data between its customers.
Kenneth White stumbled across several gigabytes of someone else’s data when he was noodling around on DigitalOcean’s service last week. White, who is chief of biomedical informatics with Social and Scientific Systems, found e-mail addresses, web links, website code and even strings that look like usernames and passwords — things like 1234qwe and 1234567passwd.
The problem started in mid-January, when DigitalOcean introduced a new solid state drive storage service. “The code that wipes the data — that securely deletes the data — was not being activated under the new SSD storage plans,” according to DigitalOcean CEO Ben Uretsky .
Read the details (and weep).
Wired has a good article today on some of the geniuses and startups in the Virtual Networking space, and how they might “remake the internet.”
Together with Dan Dumitriu — another Amazon vet steeped in the science of massive computing systems — de Candia is one of the key engineers behind a company called Midokura. Much like the oft-discussed Silicon Valley startup Nicira, Midokura deals in virtual networks — computer networks that exist only as software.
Over the past decade, VMware, Microsoft, and others have helped move the world’s computing applications onto virtual servers — machines that exist only as software — and now, a new of wave of companies is fashioning software for building complex virtual networks that tie all those virtual servers together. That’s a hard concept to grasp, but basically, these companies are moving the brains of the network out of hardware and into software.
