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April 27, 2013 07:00 pm GMT
Credit where it's definitely due: this post was inspired by a Twitter conversation with Box CEO Aaron Levie.Don't look now, but something remarkable is happening.Instagram had twelve employees when it was purchased for $700 million; all of its actual computing power was outsourced to Amazon Web Services. Mighty ARM has only 2300 employees, but there are more than 35 billion ARM-based chips out there. They do no manufacturing; instead they license their designs to companies like Apple, who in turn contract with companies like TSMC for the actual fabrication. Nest Labs and Ubiquiti are both 200-employee hardware companies worth circa $1 billion...who subcontract their actual manufacturing out to China.
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/5BBqKkgzilo/
Economies Of Scale As A Service
Credit where it's definitely due: this post was inspired by a Twitter conversation with Box CEO Aaron Levie.Don't look now, but something remarkable is happening.Instagram had twelve employees when it was purchased for $700 million; all of its actual computing power was outsourced to Amazon Web Services. Mighty ARM has only 2300 employees, but there are more than 35 billion ARM-based chips out there. They do no manufacturing; instead they license their designs to companies like Apple, who in turn contract with companies like TSMC for the actual fabrication. Nest Labs and Ubiquiti are both 200-employee hardware companies worth circa $1 billion...who subcontract their actual manufacturing out to China.Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/5BBqKkgzilo/
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