Historically in the software business high gross margins were considered essential. It is not clear to me that the same logic will apply for cloud-based services. Their cost structure might wind up being quite different. Much smaller development teams can accomplish amazing things on top of a cloud stack substantially reducing the fixed cost component. On the other hand, COGS may increase significantly as the underlying cloud services are paid on a variable basis. With that in mind, it could ...

Historically in the software business high gross margins were considered essential. It is not clear to me that the same logic will apply for cloud-based services. Their cost structure might wind up being quite different. Much smaller development teams can accomplish amazing things on top of a cloud stack substantially reducing the fixed cost component. On the other hand, COGS may increase significantly as the underlying cloud services are paid on a variable basis. With that in mind, it could ...

I had lunch the other day with a friend. He has a has a reasonably high paying job in consulting which he sort of enjoys but would rather be an artist. So the question he posed was “How much is enough?” – meaning how much money does he need to become an artist. We spent the rest of the lunch talking about different options for approaching this. Here’s a recap of what we have come up with so far: 1. Don’t wait, just start trying to sell some art right now on the side while going full steam wit...

I had lunch the other day with a friend. He has a has a reasonably high paying job in consulting which he sort of enjoys but would rather be an artist. So the question he posed was “How much is enough?” – meaning how much money does he need to become an artist. We spent the rest of the lunch talking about different options for approaching this. Here’s a recap of what we have come up with so far: 1. Don’t wait, just start trying to sell some art right now on the side while going full steam wit...