Startups
The Other Road Ahead
paulgraham.com
Startups
50 min read → 90 sec
An argument that server-based software will replace much desktop software because it is easier for users and better for small teams. It ties continuous releases, subscriptions, and browser delivery to startup advantage and weaker platform control.
The next generation of software will run on servers, not desktops
Web-based apps are easier, cheaper, more mobile, and more reliable for users
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Viaweb switched to server-based software in 1995, and Yahoo Store later reached 14,000 users
The shift from desktop to Web proved viable at scale
03 / 18
Most users care more about convenience than control
Browser-based software wins if it requires less work
04 / 18
Purely Web-based software removes friction for users
01
No installation
02
No operating system conflicts
03
No paid upgrade shocks
04
Access your data from any client
05
Collaboration built in naturally
05 / 18
The idea of "your computer" is being replaced by "your data"
Data should be reachable from any client, anywhere
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Server-hosted data is safer from crashes, theft, and viruses
Professionals manage backups and security, not end users
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With one shared server version, bugs can be fixed immediately
Viaweb rarely had even 10 known bugs at any time
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Desktop firms ship one or two big releases yearly
Viaweb often shipped three to five releases a day
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Small incremental releases reduce compound bugs and make fresh bugs easier to reproduce
Continuous deployment turns bug fixing into a fast, tight loop
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Close contact between support and developers turns support into bug detection, QA, and product feedback
Support becomes a real-time sensor for what users need
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Watching real user behavior
60% to 90%
One test-drive change raised completion rate
Observing users guides design and growth decisions
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A Web application is a whole operating environment
You control monitoring, recovery, backups, networking, and hardware choices
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Server-based software can use multiple languages for different tasks
Viaweb used C, C++, Perl, and Lisp in one application
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Subscription billing fits Web-based software naturally
Recurring revenue, no piracy, buying as easy as entering a card
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Web-based software is cheap to build and distribute
A strong startup opportunity because small teams can release continuously
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If applications move to servers, Microsoft loses its automatic control point on the client
The shift breaks the desktop OS lock-in that defined the PC era
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