Open Source or Standardized? Assessing .NET for start-ups


Just like Coke vs Pepsi or Mac vs PC, an information-age old question is what type of source code is best for developing new software. As a technology consultant for venture capitalists, this question arises fairly often. Since my VC clients often have to review business plans for tech start-ups, gambling their competitive advantage on the programming language they use can be risky.
A VC friend of mine who has a minimal technology background asked my opinion regarding an SaaS (software as a service) start-up that came his way. The firm's software product was built on Microsoft's .Net Framework and was designed with VB Net. 
His question: what did these technical terms really mean to him as a possible VC backer? Once again, another strong case for performing technology due diligence on a potential target tech firm.

My answer: while it is difficult and dangerous to rate the market validity & viability of a software package via its language, there are some very important things to keep in mind when a tech start-up uses a generic, industry standard like .Net. Here is an excerpt from a technical due diligence assessment I performed recently that covers the main issues to be aware of:

_________________________________________

Issues of Risk

·         Product Platform code:

1.       Software product based on Microsoft .Net platform which is inherently restrictive due to proprietary ownership by Microsoft.

2.       Lack of open source-code limits customization of product development; with so many options for open-source available it is a warning sign if the developers have not explored more scalable / extensible options

3.       Generic, standardized platforms such as .NET are classified as JIT (Just-In-Time compilation) languages which are non-algorithmic and, therefore, leave software more easily open to reverse engineering.

______________________________

Copyright, CSC Inc 2008, www.Tech-duediligence.com 

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