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I like that Mike. You’re sensing the wave starting to lose momentum a little but you’re still going to stay on top. Cover it all

Ironically, the SQL license alone may be worth the $5K fire-sale price. Last time I checked the per processor fee was $5,999 ($5737 with volume licensing).
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Read the auction: they’re using a hosting account at Brinkster. They don’t own a SQL Server license. They’re just “renting” it from Brinkster as part of their hosting plan.

There are some definite notable differences, but it is really easy to get caught up in the hype.

Just a word of caution.

I disagree with your Friendster analysis. It was fairly obvious to a lot of people that Friendster was not going to succeed once it became apparent that their software was not capable of handling their success and that they were not going to fix their performance issues quickly (basically changing their entire foundation/framework from Java to PHP, etc.). Throw in the fact that the founder clearly enjoyed the lifestyle of running a hot Internet startup more than he cared about the startup itself, and the constant management changes, and it was not looking too good for the company. As such, Friendster is not an example of a business that had a solid management situation. Experienced management? Yes. Management that understood their product? No. Management that was able to respond to challenges and to build an organization capable of responding to challenges? No. Loyal management, or a management capable of recruiting the right team for the business? No.

I should qualify that quality management is not just about experience, but about having domain expertise, a passion for the product, a deep understanding of the audience/customer (preferably because you are one), etc.

We write what we write. I think I have a good eye for possible winners, but I’m often wrong. I also tend to give true startups a less critical eye and focus on the positive if possible. The last thing I want to do is shred a company when I may very well be wrong in the end.

I also think the team is very important, but if seasoned management was all it took to become a winner, Friendster would have IPO’s by now and most startups, Yahoo, Google, YouTube and countless others, would have failed. Great leaders aren’t known until their first success, but they are still great leaders.

One thing I always do is admit it when I’m wrong. Hell, I make it a headline. We make a lot of thumbs up and thumbs down calls every day. I’m wrong a lot. That’s ok.

It would be nice to see a little more focus on the business side of things. If there’s a single question that should be asked to anybody starting a consumer-oriented Web 2.0 service, it is “How are you going to get your first million users?” If your can’t answer that, or if you respond with any of the following, you’re probably going to fail.

- We have a really cool feature set that people will love.
- We’re just like _____, but have even more features!
- Viral growth.
- Reviews on popular blogs like TechCrunch.

Most of the the sites that gained massive popularity via word-of-mouth, like Digg and YouTube, are the exception, not the rule, and many had first mover advantage. The dirty little secret about viral growth is that you need critical mass before you start to see serious exponential increases in registrations. Going from 1 user to 10 users in 1 month doesn’t count (and yes I have seen new sites with less than 1000 users talk about 1000% growth rates in press releases). In a market that’s saturated and where you’re competing against popular services that already have network effects, getting critical mass might be nearly impossible unless you have a strategy for overcoming these challenges. Management and strategy trump product 99% of the time.

Ironically, the SQL license alone may be worth the $5K fire-sale price. Last time I checked the per processor fee was $5,999 ($5737 with volume licensing).

As a long time microsoft dev, I have to ask…..”ouch” meaning what?

Good luck..