Product
The Real Cost of a Web Service
December 8, 2008
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At the moment I’m on my way to LeWeb3, and I’m thinking that it’s a while that I don’t do a quality post on my blog… I know that frequency is not important but I care about posting some god content once in a while.

During this travel I’m thinking about developing costs regarding Web Services. How much it cost to develop a web service? I have seen in the last years that people needed millions of dollars to develop them and lot of times they failed, for a reason or for an another. I’m developing a web service by myself and I have a budget of hundreds of thousands times minor that some amounts that people had to develop basic web services… they are my savings… So I try to get the best value from every penny of them…

People can say that developing a web service can cost a lot and I believe it, I have meet people that developed great stuff, but they never asked millions, ok they wanted good money, but not an huge amount, money reasonable for their effort and work.

At the moment comes to mind the example of Amp’d a phone company that burned some million of dollars to develop a mobile product, but what they made were big parties… at least they had fun. Some entrepreneur with lot of angel funding try to lose their mind and they are not able to administer them and are unable to create a cost saving environment. I think that some of them feel confident about the amount of money they have that spend more and more. Not all of them are so… I know also great entrepreneurs that are really great in getting the best from their funding. This crisis managed to resize the wills and the requests of entrepreneurs and funding, asking to do something with less money, and in my opinion it is possible.

Also after a web service is developed and fully operative… how much is the price to create an another one? ZERO… there is just the need to make a copy and paste of the files and data, and fix the data-base environments. Then you can have the same service on an another domain in minutes. That means lot in my opinion. Once the product is done, it doesn’t expire after the closure of the service. You can give it way for other people to implement them or find more funding and reopen from that point. I know that it seems easy on my words but the real cost is the development of the service, once it can be sold and cloned. But a clone cost less that an original and exclusive one, but every thing created digitally follows the digital rules of distribution. That reminds me of open source and the example of MediaWiki… that in my opinion can mean that open-source is the future…

In the next days some coverage from LeWeb3 2008… 🙂 Stay tuned.

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