37signals Featured in Wired (March 2008 issue)

Some [important, I believe] items to consider from 37signals' reaction to an article in Wired entitled The Brash Boys at 37signals Will Tell You: Keep it Simple, Stupid:

Myth: Whoever spends the most wins

What’s more, 37signals’ ideological objections to outside funding could make them less able to withstand competition. Nicholas Carr, author of The Big Switch, says companies like 37signals won’t have the resources to fight should larger firms with huge economies of scale and backend infrastructure decide to take them on. “They’re going to have a very tough challenge,” he says.

We continue to find this argument flawed. First of all, a few rounds of VC millions won’t put us on equal footing with bazillion dollar giants like Google, Microsoft, or other masters of economies of scale.

Second of all, we’re not in the winner-take-all software world of the 90’s anymore. Thanks to the web, there’s plenty of room for lots of companies, ideas, and products to flourish. The behemoth model isn’t the only game in town. There’s plenty of opportunity, success, and profitability to go around.

Lastly, we think our biggest competitor is habit—people using the phone, email, paper, pencils, post-it notes, and fax machines. These are the people we want to win over. We believe the simple software we’re building is the best way to do it.