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In 2000, when my partner Ben Horowitz was CEO of the first cloud computing company, Loudcloud, the cost of a customer running a basic Internet application was approximately $150,000 a month.
Marc Andreessen
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Marc Andreessen
Age: 53
Born: 1971
Born: September 9
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Cedar Falls
Iowa
Marc Lowell Andreessen
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The advantage of the consumer businesses is they tend to be much broader-based, much larger number of customers, that tend to over time be a lot more predictable. The advantage of the enterprise companies is they are not as subject to consumer trend, fad, behavior.
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An awful lot of successful technology companies ended up being in a slightly different market than they started out in.
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I've been a customer of the top venture capital firms, so I know exactly what they do and don't do.
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I would say the consumer Internet companies - in a lot of ways, if you go inside the consumer Internet companies and you see how they run, it's how all their businesses are going to run.
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Newspapers with declining circulations can complain all they want about their readers and even say they have no taste. But you will still go out of business over time. A newspaper is not a public trust - it has a business model that either works or it doesn't.
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I always had the old-school model that I'm going to work for as long as I'm relevant and focus on for-profit activities and someday when I retire I'm going to learn about philanthropy.
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Where I grew up, we had the three TV networks, maybe two radio stations, no cable TV. We still had a long-distance party line in our neighborhood, so you could listen to all your neighbors' phone calls. We had a very small public library, and the nearest bookstore was an hour away.
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Whatever you're selling, storage or networking or security, you're going head to head with the incumbent players.
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