Lightweight Models & Cost-Effective Scalability
37signals [37signals 2010] is a small, web application developing company that was founded in 1999. The company primarily develops business and personal productivity web applications and is also responsible for the launch of open source web application framework software – Ruby on Rails [Ruby on Rails 2010]; arguably a contender itself for this week’s topic. However, the focus this week is on 37signals and a few of the applications the company offers.
37signals’ first and foremost web application – Basecamp [Basecamp 2010], is a project-management tool used by a significant number of big-named companies for its simplicity and efficiency in coordinating input from multiple sources of people.
Another web application – Highrise [Highrise 2010], is a customer relationship management tool that essentially allows customers to know who they talked to, what was said in the exchange, and when to follow-up.
I could go on and list the other applications that 37signals is known for but the main point is that their success, stems from a motivation to make the complicated, simple, and this ideal is supported by just 8 employees [Caplan 2007]. While all the applications from 37signals are web-based and I am aware that one of the major benefits of Web 2.0 is freeware, I firmly believe 37signals is doing the right thing by adopting a subscription based revenue model.
A quick look at the prices shows that pricing is not exorbitant but actually very affordable even for small-time businesses. In fact, the applications can be considered ‘freemium’ because there are basic free plans for each respective application. Apart from that, factor in 37signals’ superb customer service and what we have here is an actual bargain.
So in relation to this week’s topic, is 37 signals’ business model considered ‘lightweight’ and ‘cost-effective’? I certainly think so because they are basically web-based and with such a small number of staff, have plenty of room to grow and expand if they so wish.
I personally believe 37signals will continue to grow in time and while I realise I’m writing about a company, I felt it was apt for this week’s topic especially where cost-effective scalability is concerned. Regardless, do check out some of the applications they have to offer and let me know how it works out for you because they really do seem to define the words “simplistic” and “effective”.
37signals. 2010. http://37signals.com/. Online May 10, 2010.
Ruby on Rails. 2010. http://rubyonrails.org/. Online May 10, 2010.
Basecamp. 2010. http://basecamphq.com/. Online May 10, 2010.
Highrise. 2010. http://highrisehq.com/. Online May 10, 2010.
Caplan, Jeremy. 2007. Small is Essential. http://www.time.com/time/magazine/article/0,9171,1622565,00.html. Online May 10, 2010.


