Up, Up, and Away: Technology Life in the Clouds

by Stephen J. Andriole

Not too many years ago when we invested in startup technology companies, we'd set aside about 10%-15% of the funds we raised for the technology infrastructure. This was a high percentage of funds going to PCs, servers, and software -- especially when every dollar was precious and necessary for marketing, product development, and, of course, sales. Fast-forward a decade or so, and the cost is now 1%-5%. Most startups buy nothing, install nothing, and support as little as possible. What's going on? CAPEX is gone, and expensing is in: companies pay by the drink from the corner bar -- or the one that's a continent away. Almost 10 years ago, we looked to ASPs -- remember them? -- to satisfy our drinking desires. Now we turn to all kinds of providers that will host and rent just about anything. Software-as-a-service (SaaS) + hardware-as-a-service (HaaS) = technology independence, or at least freedom from operational technology.