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A two-person startup already uses twenty-eight other tools

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31–40 of 468 posts

Re: A two-person startup already uses twenty-eight other tools

#31
post #19

Company I work for has grown to 10 people and the pricing per member things are getting out of hand. We had to drop some services, bc if there is a service that costs 10 per user for just one feature, it's they add up real quick (looking at you slack for example). Some services have free tier or special pricing if it's only couple of members, but once you exhaust that, you are dropped to full pricing. I think there i…

No reason to look at Slack like that. It may be well worth the price.

When company really starts using Slack it replaces the whole communication system of company, think at the level of replacing the complete Exchange/Outlook system, the whole intra-company email.

It's pretty big deal. And that's why they can charge that level of subscription.

Re: A two-person startup already uses twenty-eight other tools

#33
I am the CIO of a mostly remote, cybersecurity startup (50 FTEs). I balance between not single-threading all choices through me and not letting things get too out of hand. That means no one is every really happy.

E.g., we use Uberconference for videoconferencing. We thoroughly looked at a bunch of others and chose UC for its functionality, price, and simplicity (every conference gets a simple phone number, no stupid 9-digit code plus pin plus participant id). Six months after signing a 3-year agreement (my bad. rookie mistake) I had to resist my CEO’s insistence that we switch to a different provider when we were courting them as a client. A few month later, sales went out and bought 10 mf’ing Zoom licenses without consulting anyone because some client hadn’t heard of UC and asked if it was the budget solution.

Thank god our new CFO confiscated all the corporate credit cards and moved us to reimbursement with Concur. Of course, he later unilaterally selected NetSuite (for something like $40k a year!) and insisted on coordinating the roll out himself. It has been a months long dumpster fire, but he still won’t give my team admin privileges lest we try to see other’s salaries.

We use a lot of AWS. One of our red-teamers mostly used but occasionally built some of our infrastructure. He left the company last month. Yesterday, salesman from Digital Ocean reached to ask if we are still interested in going forward with the departed colleague’s plan to move all our infrastructure to DO.

So for all you folks stuck in big companies, when you wonder why your IT department is so behind the times and won’t let you use Postgres instead of MariaDB or Gitlab instead of Bitbucket, remember my experience. It’s because no matter how smart you folks are as individuals, in the aggregate you are like toddlers. You dump all your toys on the floor and then chase after some other kid’s shinier toy. Your poor CIO is left cleaning up your mess in the middle of the night after stepping on a Lego brick.

(All that said, my job isn’t bad and my company is way less dysfunctional than most start ups. I get that start ups are chaotic, and the basic nature of my job is to wrangle it.)

Re: A two-person startup already uses twenty-eight other tools

#34

Not exactly the same, but I have sometimes wondered how many startups are just burning other startups' money, and would collapse if VCs tightened the belt. For instance, startup X seems profitable but all revenue is from other startups not making money yet. Like a big ponzi scheme of sorts. Most products mentioned in the article are now mainstream, but for lots of them a few years back they were small and only used b…

I don't think it adds up to that much, compared to the cost of developers. Where I live in Eastern Europe, a single mid-level developer would cost at least $5k/mo once you take into account taxes, office space and benefits. In SV I guess you are talking well over $20k/mo. $20k/mo is a lot of software.

Re: A two-person startup already uses twenty-eight other tools

#35

I am the CIO of a mostly remote, cybersecurity startup (50 FTEs). I balance between not single-threading all choices through me and not letting things get too out of hand. That means no one is every really happy. E.g., we use Uberconference for videoconferencing. We thoroughly looked at a bunch of others and chose UC for its functionality, price, and simplicity (every conference gets a simple phone number, no stupid…

Seems like there should be some basic review processes in place. Any external dependency/purchase should require sign-off of at least one of only a few decision makers.

This should be very similar to a code review, but seen by CTO, CIO, and CEO (whichever combination is most relevant) so that big unexpected, costly structural changes don't cost long term disfunction and pain.

Re: A two-person startup already uses twenty-eight other tools

#36

I am the CIO of a mostly remote, cybersecurity startup (50 FTEs). I balance between not single-threading all choices through me and not letting things get too out of hand. That means no one is every really happy. E.g., we use Uberconference for videoconferencing. We thoroughly looked at a bunch of others and chose UC for its functionality, price, and simplicity (every conference gets a simple phone number, no stupid…

I wish I could upvote this more than once.

Re: A two-person startup already uses twenty-eight other tools

#37
post #29

You also use desks, and chairs, computers and displays. Cups for drinking water. Plates for eating. This is an interesting list, but it thinks of software as somehow fundamentally different from non software products, which is a mistake IMO. It makes it seem like Software is super expensive or something, when in reality, if you think of all inputs into your business, these costs are trivial.

True but you don’t pay subscription for your chairs. You do pay rent, but in many case the sum of SaaS subscription is in the same order of magnitude as the rent.

Re: A two-person startup already uses twenty-eight other tools

#38
post #31
post #19

Company I work for has grown to 10 people and the pricing per member things are getting out of hand. We had to drop some services, bc if there is a service that costs 10 per user for just one feature, it's they add up real quick (looking at you slack for example). Some services have free tier or special pricing if it's only couple of members, but once you exhaust that, you are dropped to full pricing. I think there i…

No reason to look at Slack like that. It may be well worth the price. When company really starts using Slack it replaces the whole communication system of company, think at the level of replacing the complete Exchange/Outlook system, the whole intra-company email. It's pretty big deal. And that's why they can charge that level of subscription.

Compared to a salary, it is nothing. If your company functions and people are more productive because of it, ~$80 a year is nothing.

Re: A two-person startup already uses twenty-eight other tools

#39

Not exactly the same, but I have sometimes wondered how many startups are just burning other startups' money, and would collapse if VCs tightened the belt. For instance, startup X seems profitable but all revenue is from other startups not making money yet. Like a big ponzi scheme of sorts. Most products mentioned in the article are now mainstream, but for lots of them a few years back they were small and only used b…

A lot of these services get quite expensive very quickly once you go over the free threshold. The free plans are just a loss leader to encourage vendor lock-in.

For example, I used to use the MixPanel free plan in a project and went over the limit and suddenly the plan cost around a thousand dollars per year.

Re: A two-person startup already uses twenty-eight other tools

#40
One thing i've noticed about markets is that when there a little to choose from you buy few tools, but expect them to do more, and you are prepared to invest time into learning them. However if there are a lot to choose from, you want more simple tools, dont want to invest time, and prefer the tools you already know.
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