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Yes, but specifically talking about Heroku, what do you suppose the plan is? If it were Engine Yard (at least the pre-EC2 version) I would know--they need to bu
by wrs 17y ago
Yes, but specifically talking about Heroku, what do you suppose the plan is? If it were Engine Yard (at least the pre-EC2 version) I would know--they need to buy a lot of servers. But I figured Heroku would be able to stay a lean mean profit machine without taking big funding. Is their model out of whack? Too many free apps (aka marketing expense) to be subsidized by the paid ones?
- jacquesm 17y agoIf I were to hazard a guess I would say they are planning a very large roll-out with some heavy hitting marketing and they expect the free traffic to go through the roof for a while, significantly outpacing the normal conversion rate, and hence their ability to finance this out of their normal cashflow. Another option is that they intend to take over a competitor (EY you've already mentioned, I'm not even aware of any others in the ROR space, but there may be more), if that's it they'll be facing some major integration issues due to the different approaches. But that's really looking at the tea-leaves, I have 0 evidence for any that. It would make some sense though, given that they've ironed out a lot of the issues they had initially, their price points have been adjusted to the point where a lot of the users are happy (and I find it commendable how they worked with the userbase establishing how much was reasonable), the only thing they have to do now is sit back and watch it grow. But they may have decided that sitting back and watching is not their style. Time will tell, but I'll certainly be watching for any major announcement.