nimbletoad blog

Free has a price. Make no mistake about it. The old saying, “You can’t get something for nothing” rings true especially in today’s Internet.

Google and Yahoo do not provide free search and email out of the goodness of their hearts. Myspace and Facebook do not exist simply because the founders were lonely. There is a seemingly endless list of sites offering you free access to their services. Mint will let you track your money for free. Sites like Cellar Tracker and Vin Cellar will let you track your wines. Yahoo’s Flickr will even let you store your photos without a charge. The question is “Why?”

Well, the March issue of Wired magazine declared Free as the Future of Business. At first glance it makes sense. Think back to the classic example of Gillette giving away the razor so it could sell the blades, or of Hewlett Packard virtually giving away printers so it could sell ink jet cartridges. Giving away something to ensure a future revenue stream seems logical. But, what about the long term? What if customers wake up one day and realize they have sold their souls for a shiny trinket?

Everyone must ask themselves “Is the free razor [or email, or storage site] worth it ?”

Is the privacy I’m giving up to sites such as Google and Myspace worth the utility I get? I used to think so. However, now I’m not so sure. I think I’ve discounted what my anonymous data is worth. On March 31, 2008 Google declared revenue of 5.19 billion for the previous quarter. It would appear Google’s product, namely our “anonymous” data is pretty valuable.

But, what about sites like Mint and Vin Cellar that do not sell advertising?

Instead of a direct answer, let’s take a look at 37 Signals. 37 Signals is not only the creator of Ruby on Rails, but of many web apps.

37 Signals does it right. They make no bones about it. They offer free functional versions of their web apps such a Basecamp and Campfire to lure you into the paid plans with greater functionality. 37 signals is in the business of creating and selling Web Apps. Their intentions are clear. Other sites’ intentions are a little more cloudy.

Two questions that everyone needs to ask before signing up for a “Free” web service:

1. What are the ulterior motives behind offering this free service?
2. Is the price of “Free” worth it?

This site is the definitive guide to why basecamp sucks.

Basecamp Sux

It also serves as a pretty complete guide to basecamp alternatives. However, watch out. Many of these alternatives are hosted solutions which will lead you into the same hostage situation Basecamp engenders.

Hosted Web Apps are the new Mob. Once you’re in, you can never get out.

Look to the solutions you can host on your own server. Aside from Nimbletoad’s own custom PM implementation, we like Clockingit hosted on your own server. You will need ruby on rails though.

Basecamp, the project management tool, from 37 signals is everything the new web should be

1. It just plain works
2. Functionality comes first
3. Highly Intuitive. Users can jump on and start using the app with little or no training

However, there is a dark side as we found out when we tried to export our data. While 37 Signals proclaims that you can export your data every 24 hours, the XML file you receive has little or no use. You cannot export all the files, attachments, and versions that you uploaded. You cannot download your write boards, or chat logs. What you get is a fat XML file of all your projects in little usable order.

Users must realize that once they commit to a hosted product there is little chance that they will be able to switch. All the functionality gained in the forefront is lost by the insidious entrapment of data. Buying into a hosted application is a little like being part of the mob. Once your are in you can never get out.

This problem is endemic to many hosted applications. We have had the same problem with Salesforce.com. At Nimbletoad we advocate opensource apps hosted by the user. That way, no matter what happens in the future the user will have complete functional access to their data.