Zero-capital startups in VS .NET

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Zero-capital startups
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The emergence of the cloud has greatly impacted entrepreneurs (and their investors) eager to start a new business. It has lowered the barrier of entry for innovation and has leveled the playing field for new entrants who can now bring new software services to market with little up-front investment. By unleashing large amounts of computing capacity, it has enabled new classes of applications that previously only companies with deep pockets could afford.
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Then and now: setting up shop as startup ca. 2000 vs. startup ca. 2010
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Entrepreneurs today face a different set of challenges than they did a decade ago, particularly those trying to set up a software service or online business. The main difference is how far a startup can get today without obtaining a large amount of capital to fund their business compared to how far they could get in the past. Formerly, without an external source of funding, a couple of founders might be able to dream up a new application or service and start prototyping it on their desktop computers and then load it up on a laptop to take in to demo to some angels or venture capitalists. If they had a little more capital resource available, they might be able to purchase a handful of servers, sign an annual contract for some colocation space, and then hope for the best. If they either ran into a tough patch or had extreme success, they were severely constrained: they had to look to external resources for capital to either keep the business afloat or keep up with growing demand. Today, the picture is entirely different. Entrepreneurs don t have to stop at a prototype or a demo application because they lack the capital necessary to launch the offering. They can much more easily bootstrap the operation because the availability of cloud services means there are no up-front costs such as hardware to buy or datacenter space to rent. They can have fully functional and operational businesses
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Zero-capital startups
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online generating value. If the business idea isn t that great after all, nothing is lost except the sweat equity that went into putting the idea into practice. If, on the other hand, the business takes off, the on-demand nature of provisioning cloud services means that more instances can be brought online as needed so that costs only ramp as usage (and, we hope, revenue) ramps. As a small organization, the startup has the advantage of being nimble and able to react quickly to changing needs of the market. Because of the availability of the cloud, some of the advantages a larger company may have, because of its better access to capital, are reduced. But the leveling of the playing field cuts both ways. The barrier to starting and operating a business has not only been lowered for one, it has been lowered for all. Many small competitors can enter a space; and without sustainable differentiation, such as superior technology, better distribution, or service, the only means of competing ultimately is price. For example, let s explore the concept of load testing using the cloud by looking at the open-source project Pylot. In a matter of minutes, you can launch an instance, point it at a website, and run a load test. It isn t a particularly big stretch from that exercise to putting together a service for load-testing in the cloud by writing some software for coordinating several instances and collecting and summarizing the results. Several startups are trying to make a go of this, some with little or no external funding and others with traditional venture backing. These startups face the challenge of differentiating themselves with almost no intrinsic defensibility in their offering. They must rely on better technology, service, or distribution to come out on top.
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