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37Signals

37signals' Fried: 'Free is not the future' of apps

MIAMI--Jason Fried of 37signals kicked off the Future of Web Apps conference here with a bang earlier Tuesday.

37signals is known for making project management and collaboration software for the Web. It also features a pricing model for its products, which is somewhat unique for a provider of Web applications.

Jason told the crowd here today that "free is not the future of business." He stressed to the Web app developers and entrepreneurs in attendance that they need to start charging for their applications and that free is not the way to go.

Fried went on to say … Read more

Simplicity and its discontents: Jason Fried vs. Fraser Kelton

NEW YORK--After listening to Jason Fried (37 Signals) give his compelling Web 2.0 Expo talk Wednesday about building companies in the modern world--which could be summed up as "simplify, and don't work too hard doing so"--I walked across the hall to hear Fraser Kelton (Adaptive Blue) discuss the negative ramifications of this strategy.

Kelton posed the question this way in his pre-conference writeup: "What happens when early adopters have become spoiled by single-feature technologies that take no more than a moment to grasp? The challenge faced by the next wave of innovative start-ups for … Read more

The key to making money: Charge for your product

I loved this presentation by David Heinemeier Hansson of 37Signals. His topic? How to make money as an online software company.

His verdict? Charge for your product, but be careful whom you charge.

Chris Anderson elaborates on this theme:

37Signal's secret is not to target consumers (who don't like to pay) or big companies (that's a crowded space). Instead, they target the "Fortune 5 Million"--small companies with specific needs that are underserved...

It's interesting how closely some of Heinemeier Hansson's ideas map to the commercial open-source world, in which charging for one'… Read more

US Small Business Administration wins award for innovative, open source-based website

Who says government can't innovate? As the US Small Business Administration recently demonstrated, government can innovate, and increasingly does so with open source.

The US Small Business Administration just won the prestigious 2008 GCN Technology Leadership Award for its innovative Business.gov website, a site that had formerly been bogged down by proprietary BEA software. No more. The site, which coordinates some 9,000 resources throughout the US federal government for 21 different agencies, has seen a 30 percent increase in traffic since it was resurrected through open-source technologies, including Alfresco.… Read more

Selling open-source 'ice' to the eskimos

Savio Rodrigues of InfoWorld tries to parse what makes open-source buyers tick, and how to generate more of them. In so doing, he suggests that the real battleground is over those enterprises with both money and expertise to go it alone with open-source software (so-called "Category B" customers).

Why should they bother buying support when they can self-support?

For me, this isn't the right question. Using his MySQL-derived customer classification system, the real question is, "Can proprietary software serve Category A (companies with more time than money) at all?" and "Can open source more efficiently serve Categories B and C too?"

Implicit in Rodrigues' reasoning is, I think, a belief that if the software is proprietary, A, B, and C companies will all eventually just say, "Aw, shucks. I've got time/expertise/money, but what does it matter, I just have to pay anyway!" So the vendor cleans up on all three.

In fact, my own experience suggests that B companies buy less and less proprietary software (E*Trade is an example). Ditto goes for B, and C companies are willing to pay, anyway, so where is the conflict with open-source business models?… Read more

How open source can help the SaaS company

Sometimes we think that the reasons for Software as a Service and open-source success are mutually exclusive. According to David Heinemeier, founder and developer of the various 37Signals' projects and products, however, open source is integral to 37Signals' success.

In fact, it's fair to say by David's reasoning there's very little to recommend a proprietary software strategy anymore:

Open source provides an incredible amount of technical leverage for small companies. No matter how productive your rock-star programmers are and no matter how much judo you apply to your problems, solid infrastructure takes a long time and benefits immensely from broad involvement. It really does take a village to raise great infrastructure.… Read more

Ballmer shopping for open-source companies. Who's for sale?

Sometimes I read things like this and I'm relieved to find out that Steve Ballmer isn't completely deluded by proprietary ideology. Speaking at the Web 2.0 Summit today, Ballmer made it clear that his vendetta against open source isn't as all-encompassing as he sometimes makes it out to be:

"We will do some buying of companies that are built around open-source products," Ballmer said during an onstage interview at the Web 2.0 Summit in San Francisco.

A refusal to consider acquisitions of open-source developers "would take us out of the acquisition market quite dramatically," Ballmer said -- a tacit acknowledgment of how thoroughly open-source development has reshaped the software market. … Read more

Open sourcing help wanted ads

I really like the advice in this 37Signals' blog post about writing good 'Help Wanted' ads. As with open source, the general theme is to be transparent. No hiding behind superficial buzz words and such:

The kind of help wanted ad you write can help determine what kind of applicants you get. Write an honest, thoughtful, clear ad and you're more likely to hear from candidates with those qualities. Spout a lot of buzzwordy nonsense and you'll attract people fluent in bull[potty].

Amen.

37signals launches Highrise

37signals launched Highrise this morning. It's a customer relationship management (CRM) tool aimed at small groups and medium-size businesses. Highrise is meant to fill the gap between Outlook's contact manager and complicated CRM apps that require an IT department to keep running smoothly. It's also priced below SalesForce.com's Team Edition, with more of an emphasis on contact communication and history, rather than sales and forecasting. It's a Webware solution for people who don't want to install CRM software or manage a huge database, and who need a tool that can be accessed on the go.

Highrise launches with six different plans, five of which are paid services with the benefit of shared group storage, increased contact and collaboration limits, and relation-based information pages called "cases." Each tier of service can be upgraded or downgraded at any time, and there's no contract.

In Highrise, each case file can contain information about multiple companies; contacts; and any important information like notes, shared files, and e-mails. By grouping this information in one place, you can create a detailed history or context for a group or contact. Highrise has some built-in tools for organization as well. You can schedule phone calls, reminders, tasks, or basic to-do lists, and assign or include other Highrise collaborators. It's not nearly as deep a system as you get with 37signals' group collaboration tool Basecamp, but if you see something you want a colleague to follow up on, you can do it without firing up your e-mail client.

For integration with your e-mail, Highrise recommends that you set up your e-mail app to automatically forward everything to a special Highrise address. Highrise will parse your messages, and copy over any attachments along with the original text to the contact's profile page on Highrise. If you haven't already created the contact in Highrise, the app will create it for you. … Read more

News Roundup: Digg gets OpenID, Flickr downtime, 37signals Highrise teaser, Blinkx + Sproose partnership

Digg to adopt OpenID. Later this year, Digg will be adding OpenID to its site. OpenID, which we looked at back in September, creates a master password similar to what you get with Microsoft's Live ID, but it's not proprietary. ( TechCrunch)

Flickr outage reveals site's scale. Flickr wasn't working yesterday, but fear not--it's back up. The problem mixed up a large number of photos across the site, which quickly led to Yahoo shutting down the service for several hours. Interestingly enough, the outage revealed that at times, the site serves over a billion photos a day. ( … Read more