Would You Leave the Cloud to Improve Sales Efficiency by 11%?
Tom Tunguz
OCTOBER 22, 2022
Last week, David Heinemeier Hansson explained why his company, Basecamp, is leaving the cloud. They will manage their own servers to reduce the $3m annual AWS bill by 60%. Setting aside the technical questions around such a migration for a paragraph or two, this move will improve Basecamp’s efficiency materially. For a hypothetical startup, a 60% reduction in infrastructure costs boosts sales efficiency by 11% & net income margin by at least 12%.
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