Jan Kubr

Outsource what is not your core business

In Uncategorized on May 4, 2008 at 11:49

It’s come to me again. A while ago I wrote a few posts about Amazon S3 including how it gives you more freedom. Recently I’ve seen Jeff Bezos’ talk from Startup School 2008 where he shows how 300 years ago, if a company needed electricity, they had to have their own electric power generator. I can imagine that not so long ago, if you wanted a server connected to the Internet, you wouldn’t just rent one from your ISP and leave it in their hosting center, but you had to have your own DSL (or whatever) line and make sure it never goes down.

Now it would seem crazy to generate your own electricity or try to build your own hosting facilities if it’s not your core business. However, it’s not yet so obvious that you should outsource more than that. Any “heavy lifting”, as Jeff puts it, that is not your core business (and someone else can do it better and cheaper), should neither distract nor slow you down.

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