Low-Cost Providers Are Accelerating

Yaron and I are going back and forth today about our various investing/incubating opportunities.

He had a board meeting on Tuesday with Aprigo a stealth startup in the data management space.   Like Arista (Bechtolsheim’s new startup) they cut costs for a certain category but a factor of 80%.  Pando, Yaron’s previous company cuts CDN costs by a factor of 5-10x using peer-to-peer technology.  There are countless other examples, Pond5 (stock footage), Drupal (content/product mgmt), Wix (Flash development) and I could go on.

The one that really makes you wonder is Google and how cheap (free) there products are relative to Microsoft Office.  We use Google Apps at TechAviv and while there have been some frustrating moments when we haven’t had Internet access,  the apps are very, very impressive.  How long will people and corporations keep buying Office and what does this mean for Google’s prospects?


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