InfoAnda - New technologies coming to Web start-ups' rescue

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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters New technologies coming to Web start-ups' rescue Fri Mar 27, 2009 1:01pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By David Lawsky SAN FRANCISCO (Reuters) - Web entrepreneurs are increasingly embracing new technologies from "cloud" computing to new computer languages to try and slash costs as investors disappear because of the recession. Investors and entrepreneurs say cloud computing, new -- and free -- programing languages, open-source software, and use of the Internet to distribute and publicize products have made starting a company relatively inexpensive and will allow startups to ride out the credit crunch and recession. "What you're talking about is life or death," said Drew Clark, director of strategy for IBM's venture capital group, speaking to Reuters on the sidelines of a business conference. Venture capital investment dived 71 percent in January and is not expected to rebound for much of 2009. "For the best of these companies, this could be the difference. If this had happened three years ago, they'd be gone," Clark said, adding that IBM advocates open source. One much talked-about innovation is cloud computing -- using the Web to access programs and data at remote computer centers. That makes costly, long-term capital expenditure and storage unnecessary. Persistent concerns about the security of data stored on remote servers and the dependability of external systems are offset by its economic advantages, entrepreneurs say. "In 2005 we needed 10 to 20 times the money we need today. There was a certain amount that entrepreneurial intelligence couldn't get around. Somehow you had to pay that piper," said James Siminoff, chief executive of Grid.com and Simulscribe, which changes phone messages into text. ONE HOUR AND $50 A decade ago, Michael Eisenberg, a general partner with Benchmark Capital in Israel, recalls he had to pay $10,000 each for Sun Microsystems servers. "Today if I want to start up, it takes me one hour and $50 and I can turn on my capacity from Amazon Web Services from anywhere in the world," Eisenberg said. Some fledgling companies like Delve Networks are capitalizing on that trend, charging clients over $250 a month to host video on their websites. Delve itself owns little more than the personal computers used by its 20 employees. Time is critical for start-ups because they burn cash every day. Hence the rise of streamlined programing languages such as this year's hit, Ruby. Ruby is a free, open-source language that Siminoff's chief technology officer, Mark Dillon, said is so concise he can do in three lines of machine code what it took him 25 lines in Java, an older language. That speeds up program revisions. Corporations have turned to offering free, open source software -- a boon for cash-strapped start-ups. Sun Microsystems, IBM and others give away software to attract developers and gain contracts. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Verizon plans to sell netbooks: report also on reuters Blog: IPO drought persists in Q1, no rain in sight Fed's Plosser: Economic outlook "pretty ugly" Send Questions: Ask the World Bank President More Technology News Mobile software, data fees in spotlight at CTIA Apple schedules developers event for June Google to cut 200 sales, marketing jobs Verizon plans to sell netbooks: report Nvidia countersues Intel in licensing battle More Technology News... Editor's Choice Slideshow A selection of our best photos from the past 24 hours. Slideshow Most Popular on Reuters Articles Video Obama sets Qaeda defeat as top goal in Afghanistan | Video Italy's "Josef Fritzl" arrested for incest and abuse Tension simmers at Nomura as Lehman bonuses loom | Video Robert Pattinson readies fans for "Twilight" sequel Flood waters reach record high in Fargo | Video Japan readies defenses for North Korea rocket launch | Video Fans pare "Idol" top 10 with Sarver elimination Crash pilot who paused to pray is convicted Pizza-making machine has chefs in a spin | Video Blundering Afghan suicide bomber blows up 6 militants Most Popular Articles RSS Feed Video Japan prepares for NKorea missile Nasty weather pounds U.S. Pizza vending machine Brown backs more trade financing Baby monkey makes zoo debut Scores die in Pakistan mosque blast Indonesian dam bursts U.S. sends message to G20 US warns NKorea on missile Obama defends budget and dollar Most Popular Videos RSS Feed The Great Debate Computer industry hopes lie in the clouds Eric Auchard The next phase of the computer revolution is busy being born out of the ashes of the current economic crisis. It goes by the hazy term of "cloud computing." Commentary Your opinion matters We want to hear from you Learn More Take Reuters online survey Reuters.com: Help and Contact Us | Advertise With Us | Mobile | Newsletters | RSS | Interactive TV | Labs | Archive | Site Index | Video Index Thomson Reuters Corporate: Copyright | Disclaimer | Privacy | Professional Products | Professional Products Support | About Thomson Reuters | Careers International Editions: Africa | Arabic | Argentina | Brazil | Canada | China | France | Germany | India | Italy | Japan | Latin America | Mexico | Russia | Spain | United Kingdom | United States Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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