How Google App Engine Affects Startups

Google App Engine
Google has just announced a new service called Google App Engine. “Google App Engine enables [developers] to build web applications on the same scalable systems that power Google applications.” Basically GAE is a scalable web application back-end with a nice API. So what does this mean for web startups?1 Because web startups commonly have an exit strategy based on being acquired by Google or a similar company, and because web startups are bounded financially in growth by constraints such as scalability, GAE means a lot.

Google App Engine Effects on Google

Previous to GAE, Google only directly benefits from startups by acquisition. After an acquisition, Google must spend time scaling the acquired assets to Google proportions.

Now with GAE, Google will profit more directly from startups who pay for GAE services, allowing profit in numbers. Also, if Google chooses to acquire a certain startup, the startups assets are already generally fitted to work with Google’s internal scaled systems.

Google App Engine Effects on Startups

Previous to GAE, startups really only truly ever made big money if they are acquired by Google or, by chancing the storm of scalability investment and try to break though the scalability investment wall like Facebook and Digg. Breaking through is obviously extremely rare and few startups even consider this a valid “exit” strategy.

Now with GAE, startups don’t have to avoid designing their systems to scale up, right from the beginning (a previously extremely expensive and questionably worth it endeavor). GAE’s inherent scalability dramatically reduces the dependency for startups to be acquired as an exit strategy. Growing big is much more practical than in the past.

How’s the Model Changed?

So, is the startup-Google bond being loosened or tightened. Breaking the situation down, it seems that Google is spreading their endeavors more thinly. Without GAE, the startup-Google bond is an “all eggs in one basket” situation. With GAE, startups will be less likely to sell out to Google but, Google’s made more money in the numbers of startups using GAE.

  1. Based on my observations after visiting Disqus. []

Life In a Web Startup

Disqus LogoI spent three days in San Francisco basically living with the founders, Daniel and Jason, of Disqus, a small Y Combinator startup that is building a distributed comment system for online publications (I use it on this blog). The trip was, by far, one of the best experiences of my life. I got a unique look into the micro-economy of the web startup industry. Previous to my trip, I had a wildly glorified image of the “Web 2.0″ startup culture/bubble, mainly based of how it’s portrayed in the blogging community.

I’ve posted pictures from the trip on Flickr.

While in San Francisco, I was able to talk to quite a few startups:

  • Disqus — Distributed comment system.
  • Dropbox — Simple file synchronization.
  • Clickpass — One click login.
  • tipjoy — Easy micro-payments.

What Do They Do?

Many of the said startups were still in the wee-early stages of being a company and their “offices” were also their apartments. They rent apartments month by month so that a move to a real office can be quick and painless. The lines between work and play (no secret) were extremely blurred and work sometimes lasted from the moment they wake up to the moment they go to bed. Days were also filled with all types of coffee shop meetings, from venture capital firms and other startups, to lawyers. The phrase “wearing many different hats” is an understatement for these guys. Not only are these companies building a product, they are building web communities.

Objective: Preemptive Prototyping

Web startups are not necessarily aiming to make fully scaled-up products/services or a completely implemented revenue model. Big beasts like Facebook and Digg are obviously startup anomalies and I don’t think too many web startups actually aspire for such obesity. Essentially, startups are preemptively thinking up new service and product ideas, prototyping the software and web community, and then a company like Google picks and chooses which product it wants to take on.

“The Model Race Car Model”

Model Race Cars

A startup can be thought of as building a model race car. The model car is smaller, only 1/16th the size of a real car and doesn’t have professional racing decals to make money. Google buys the models it fancies and builds them up to make real race cars, decals and all. Many web startups these days show off their potential by rapidly building a large web community or user base. By this metric, Disqus is flourishing. Of course, in reality, this “preemptive prototyping model” applies in varying degrees. Just to be clear, I don’t mean to suggest that startups are building toys, merely that its faster to convey an idea on a smaller scale.

In the end, I decided not work at a startup. At least right now, startup life is not for me. I’ll be moving to Chicago in a few months to work at Allston Trading, an algorithmic trading firm. This was definitely one of the hardest decisions of my life.

Semantic Crawling Optimization

Most online writers use web applications like WordPress and Tumblr to facilitate blogging, and as a result, writers are at the whim of the theme designer when it comes semantic correctness. In layman’s terms, semantic correctness is analogous with “how well the theme is coded.”

Choosing a Theme

When choosing a theme for my publications, I don’t just look at design. I look at how semantically correct everything is. This means checking for rel=”nofollow” on links that don’t need to be searched, ensuring the html title and description are correct and unique for every page, and essentially, making sure a blind person could easily have the site read to them by a screen reader. These issues are addressed by a practice called Search Engine Optimization (SEO) which helps the search bots (which read pages like a blind person would) understand the site’s content.

Still, it’s almost impossible to find a completely SEO-friendly theme. There are, of course, many WordPress themes which can be dropped in to add some extra semantic correctness but in general, it’s easiest to find a good theme.

Contexts of SEO

SEO can sometimes have a negative connotation as well. Some people sell not-so-moral services under the guise of SEO when in reality, they are doing things like adding content to intentionally trick search engines instead of making the site more semantically correct. SEO in it’s true form is more for helping users find information more effectively than for the search engine in it’s own right.

Joost de Valk is a true SEO consultant and web designer in The Netherlands and is where I get 99% of my SEO counseling. If you run a website, even if you don’t care about your users, some of his tips are so easy and it’s worth it just to have easy access to your own content. Joost has a great definitive guide on SEO for WordPress which I highly recommend.

Epiphany Moving to WebKit

Epiphany, the very excellent Linux web browser for Gnome, will now use WebKit, instead of Gecko, as the layout engine. I’ve used Epiphany extensively in the past when Firefox 2 was terrible on Linux and Epiphany has had the added benefit of native GTK+ widgets and was definitely faster than Firefox 2. WebKit, in parallel, has been benchmarking faster than Gecko (Firefox) and Trident (IE). Though I don’t have many sources to back the speed claim up, WebKit is definitely fast. Combining a fast GUI and fast layout engine should give Linux/Gnome a step up when it comes to web browsers.

I really hope this is not an April Fools. Time will tell.

Firefox Logo

Development on Firefox 3 (Gecko 1.9) has done a lot to minimize memory usage. One of the biggest draws to Firefox is it’s extensions, but extensions are also one of Firefox’s main slowdowns and therefore drawbacks.

For Gecko 1.9, we’ve implemented an automated cycle collector that can recognize cycles in the in-memory object graph and break them automatically. [...] It is especially significant for extensions, which can often inadvertently introduce cycles without knowing it because they have access to all of Firefox’s internals.
Stuart Parmenter

Epiphany extensions work a bit differently. Extensions are written in Python and don’t give the developer such unbounded access to the browser internals. This could be viewed as restrictive but seeing that Firefox extensions are such a huge cause of slowdown (enough to implement automated cycle breaking), I see this restriction as necessary and helpful. The Epiphany extensions, as a result, seem more lightweight and robust.

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