So you're moving to the Cloud...

Moving to the Cloud ? (Part 1)

From time to time I’m asked to review or provide an unbiased critique of a web-based site or online startup. Occasionally this request stems from someone I know who has been potentially tapped to assume a significant role in the leadership of the site. Other times, the site is in its conceptual stages and needs someone to throw a few darts at the concept to make sure things are well thought out and to avoid ‘gotchas’ later.

So here are a few items to take under consideration you begin the path down this road to web stardom. These questions and discussion points below are in a kind of free-ranging style, but you get the idea of some of the important things that need to be ironed out and discussed among the principals. Remember, it’s far better to do this legwork up front rather than run into the gamut of woulda/coulda/shouldas later.

If you’re just in the ‘proof of concept’ or ‘blue sky’ stage, that’s one thing, but once you make the decision to go to the next step and map out your real business plan, the way you maneuver through these items (and potential roadblocks) will be critical to your success.


Business related –

Has your business model been conceptualized from the beginning as a (hopefully) for profit company ? Did it begin as a ‘fun’ or ‘cool’ website that now you think you would like to monetize? If it began as the latter, are the principals ready to make the leap and truly commit the time and resources to make it happen?
Who has an equity stake in the business? Has this been formalized in writing with documents and attorneys and all those necessary details, or are you just ‘winging’ it for now ? Do you have a business license ? Do you even need one ? Articles of incorporation? Do you have a clearly defined corporate hierarchy and officers (even if it’s just a few people) ? What about a board of directors or advisors?

Who owns the domain ? How long is it ‘locked in’ ? Have you also acquired the *.net and other variations ?

Do you have any NDAs ? Are there any in place? Were they drafted by an attorney knowledgeable in IP law ?

Do you have a clearly written, unambiguous privacy policy that’s available for all to see ?
What is your revenue model? You can't expect to keep site running forever by relying on your own bankroll or even donations. Will you sell advertising ? offer Subscriptions? Ask users to pay for premium content? If you end up with a lot of highly defined, qualified users, then even without a lot of revenue, you now have a very valuable asset. Find a way to use this to your advantage, but be careful with user privacy rights.

Where is the site hosted ? Does the hosting company offer you a competitive SLA that meets your needs ? When / how often/ is their maintenance window ? Do you run the risk of being offline during these times ? Would you be able to change to a different ISP/hosting company without too much difficulty ?

Who is your chief webmaster and top software architect/coder(s), What about your DBA(s) ? Who are these people? Are they employees or contractors ? Do you as the principal have access to all code? Who else has access to the code/logins/etc. ? What if the main technical person leaves or quits - what would it take to have someone else step in and take over? What type of agreement is in place for updates, code maintenance, database work ? Have you implemented best practices for code design and checkin/checkout procedures ?

Have you considered an exit strategy? This should be part of your contingency planning for unexpected events. Always consider your options at both a macro and micro level. Things change, competitors arise from nowhere. Be prepared and respect your competition. They have smart people working for them, too.

Later, in the next part, I’ll discuss some of the high level content, programming, and user experience things to remember as you embark down this path to working in the cloud…