Archive for the ‘Business’ Category

Garret Heaton

The Way Things Don’t Work

By Garret Heaton | 2 years ago | 0 Comments |

Last Wednesday we were painfully reminded how much it sucks when your service goes down. We lost a server that was a single point of failure and had to move all of its services to a new machine. It kept us offline for about an hour. The next day GitHub and Facebook both suffered surprising outages and confused many programmers. No matter how big you are or how much money you put into your architecture, things are going to fail.

Obviously your just-launched startup isn’t going to have the availability of Google, and it shouldn’t. Maybe you’re bootstrapped and running on a single server — that’s fine (and a great way to save cash). But as you grow you’ll need to remain aware of your service’s weak spots and incrementally improve its ability to handle failures. ‘Incrementally’ is a key word here. Your service doesn’t need to be capable of five nines of availability before you’ve seen if the idea is even going to work out. On the flip side, it can’t have weekly outages once you have traction and paying users. In the middle you’ll go through various stages of improvement which probably look something like this:

  1. The “epic fail” stage – Everything’s running on one server. If it goes down your entire service and homepage are unavailable. Users don’t even see an error message. This is usually where you start.
  2. The “oh crap” stage – If a critical service is lost the service is mostly unusable but can at least let users know there’s a problem going on.
  3. The “uh oh” stage – Critical services are highly available and it’d take a major infrastructure failure for the core service to become unusable. Things may be a little slower during a failure but many users won’t notice.
  4. The “smooth sailing” stage – Your system can self-heal and recover from all expected failures automatically and users are unaffected. You only have to get involved when sh*t really hits the fan.

At any startup infrastructure upgrades must fight for time alongside new features, bug fixes, performance improvements, PR, and a million other things. There’s always a risk of downtime, just like there’s always a risk of losing customers, an employee, being the target of an attack, etc. It’s all about balance.

As for us, we obviously still have a service that’s a single point of failure and we’re working to fix that. Thanks for your patience during the outage last week.

Garret Heaton

Hey smart guy – stop trying to do it yourself

By Garret Heaton | 2 years ago | 5 Comments |

When we’re at conferences and meetups there are always a few people who come up to us (probably because of our awesome shirts), hear what HipChat is, and say “Couldn’t I just setup my own Jabber or IRC server for free?”

“Yeah, but you wouldn’t get the slick UI, drag-and-drop file sharing, searchable history, and all that. Plus, you’d have to manage the system and teach people how to use it.”

For some reason these points never resonate with this type of person. Solving 10% of a problem by themselves is good enough. What they don’t realize is that people are very willing to pay for the convenience of a hosted service and the things that come with it: a cleaner and more consistent interface, support, frequent updates, and peace of mind. I imagine many startups run into this type of response at some point. Here’s how a DIY mind may have responded to some services which are now very successful:

  • Cloud computing – “Couldn’t I just buy a cheap machine and stick it in a colo?”
  • Flickr – “But I could build my own photo gallery using PHP in 20 minutes!”
  • GitHub – “But git is open source software. Why would I pay you when I can just run it locally?”
  • Google Apps – “Can’t I just run my own Postfix server and set up Horde?”

I’d like to challenge all you do-it-yourselfers to think about the problems you’re capable of solving and how many people could benefit from the solution. If it’s a fair number of them you probably have a great idea for a startup. There are a ton of people and companies out there. Sure it’s fun to solve problems yourself, and it’s a great way to learn, but keep your mind open. There’s always room for improvement and that’s a great way to make money.

Pete Curley

Does your web service need a desktop app?

By Pete Curley | 2 years ago | 2 Comments |

Most “influencers” out there will tell you to stay away from making desktop apps. They’re hard to program, a pain to update, and just aren’t as sexy as web apps. We agree with that advice most of the time (we love Gmail and despise Outlook). But at some point the benefits of desktop apps are undeniable and laziness of influencers becomes apparent. We set out to build the best instant messaging and group chat service and our desktop app is a big part of that equation.

The benefits of a desktop app

  • Notifications – We used web-based instant messaging at previous companies and we missed a LOT of messages. This leads to an email or even worse…the tap on the shoulder. “Hey, you get my message?”
  • Runs when you start your computer - We typically don’t like apps that invite themselves to the restart party but imagine trying to get 60 people at your company to keep one web page open, all day, and you can’t message them if they close it.
  • Speed – Web apps have to do more work to communicate with the server (at least until all browsers support HTML5 WebSockets). Everything is slower as a result.
  • Consistency – With Adobe AIR, we know our app will run almost exactly the same on Windows, Mac, and Linux (notifications are handled differently on each OS).
  • Drag and drop file sharing – A real timesaver, now available in some browsers with HTML5.
  • Clipboard paste - Designers rejoice! Take a screenshot (or layers from Photoshop) and paste directly into HipChat. We convert it to a file to be shared in seconds.

Why do you also have a web app?

When we launched HipChat in January, to my surprise, the loudest feedback we got was about the lack of web app. We banged out a near clone web version of our desktop app in a few weeks to a happy crowd. Based on the loudness of the outrage I predicted that HipChat users on the desktop app would be 50% and 50% on the web. I’m glad I was wrong. 93% of HipChatters use the desktop app. These numbers could also be because our desktop app is seriously amazing, or conversely, that our web-app is seriously terrible (which it isn’t ;) ). Most people use the web version when they’re out of the office or if their workplace doesn’t allow them to install software.

I hope this gives you a little more courage to wander into the realm of desktop apps. But remember, don’t build one just because you can.

Pete Curley

Bootstrapped no longer – Why we’re raising (a little) money

By Pete Curley | 2 years ago | 2 Comments |

Scrooge McDuckWhen we started HipChat a year ago, our goal was to bring HipChat from concept to profitable product while controlling both the direction and ownership of the company. HipChat has been bootstrapped for the last year, we have awesome customers that we love, and we’re quickly approaching profitability… so why are we raising money?

The answer is an interesting set of events that got great investors on board, without having to pitch a single one.

How it happened
A few months ago, we were approached by Elaine Wherry and Sandy Jen, co-founders of instant messaging startup Meebo, after they each won TechFellow awards for innovation. Not only are Sandy and Elaine friends of ours, they also use HipChat at Meebo. The TechFellow awards, sponsored by Founders Fund and TechCrunch, honor technology innovators for achievement and excellence in high-tech entrepreneurship.  Each TechFellow is awarded $25,000 to invest in a new startup of their choice. Founders Fund has the option to invest an additional $25k for a total of $50,000. Both Sandy and Elaine gave their awards to us and after the $50k from Founders Fund, brings us to a grand total of $100k.

If being bootstrapped is so awesome, why did you take the money?
We talk with a lot of startup founders and investors. The one thing we’ve heard across the board is that raising money takes time. Finding people to pitch, preparing the pitch, finding the dongle to make your Mac work with a projector, pitching, negotiating terms, doing paperwork. etc. We would rather make a product that makes money than spend months raising it. In this case, we could get money to grow HipChat faster, spend no time pitching, and contribute to the Silicon Valley ecosystem by getting some great investors on board.

What are you going to do with the money?
Spreading the word about HipChat through advertising, PR, and marketing. Unlike consumer apps, enterprise software isn’t inherently viral. We’ll also be firing up more servers so our infrastructure is more robust.

We learned a lot from this experience and want to help anyone who is raising money or trying to bootstrap. Please ask us if you have any questions. Oh, and if you’re not using HipChat at your company yet, give it a shot!