Insights Shared – Hammer & Nail, Payment Gateway Review..and more

Insights shared by readers.

Few insights shared by readers that needs to be propogated to the wider audience (we earlier used to showcase some of the interesting comments and restarting the process now).

So here is a roundup of interesting comments:

Article : Story of Hammer and Nail (and Startups)

The problem statement can wait. Here is my argument:

1. It is important to have high technical skill levels to build a good product or practice. Most founders start with poor skill levels, so its a good idea to develop them first.

No point finding a nail when you have nothing to fix it with.

2. Technology is really hard to crack (relatively speaking). For an average learner like me, it takes me 2-3 years to have high skill levels (in my opinion) in my field (web app development). I’ve been in business for over 2-3 year now and it is only recently that I am adapting my self to being customer centric – finding the nail.

3. For most people, its hard to do business and technology together because technology is a mostly introverted activity requiring focus, whereas business is usually extroverted and requires sensing opportunity.

My Conclusion: If a founder starts at lower skill levels then there must be realistic expectations. Don’t expect to break out in the first 3-4 years and you should be fine. For that you must be prepared to have the “staying power” for those 3 odd years. I would also recommend not making business plans unless you have a hammer first.

From Rushabh


Article: Review of Payment Gateways in India

It would be interesting to hear opinions on online fraud and risk management tools offered by the above mentioned payment gateways from Indian startups that charge customers online for transactions.

Personally, I find the online fraud tracking, rules engines (that can be customized by merchants) and risk management support offered by most Indian gateways pretty sad.

While global payment giants like PayPal invest a ton in cutting edge fraud technologies and provide seller (merchant) protection (inclusive in their transaction fees) I do not see them being useful for the Indian market for low $ value transactions due to price per transaction + currency exchange fees.

I would imagine online fraud is a problem and a loss/expense to startups given that stolen credit card fraud is a blooming global trend. So net net 2 questions for the pluggd community:
1. What are current online business doing to manage online fraud and manage chargebacks?
2. What useful fraud tools are the Indian payment engines offering currently? Plan to offer in near future?


Article: Opera 10 Released – Packed with Turbo

I trust Opera (who doesn’t even know who I am to begin with) more than my ISP who exactly knows who I am, where I stay, has met me in person and other details about me. He would be better interested in profiling me.

2. There’s lot of mix in here. Let me clear the clouds.
a) SOAP, in most cases, USES HTTP as a transport protocol, and is aimed towards web services. They are not competing I believe.
b) What turbo does is something similar to SSL. When you are using SSL doesn’t mean that HTTP is not respected at all. A typical use case would be when you use SOAP over SSL, here SOAP, HTTP, SSL, TCP and IP, these 5 protocols are simultaneously working. With turbo, you add one more to the mix.
c) Caching in this case is duly taken care by Turbo servers. If we see the basic aim of caching, it is aimed towards making browsing faster and turbo does that albeit in its own way.
d) IP location, GeoLocation, DNS resolution have nothing to do with HTTP protocol.

Turbo comes with its advantages and compromises, when you don’t need it, just turn it off with one click. i have been using it since launch and it has been doing great so far.


Article : iPhone 3G S in India

Technically looking at 32k iPhone in India is not that expensive compared to US ($199) with its 2 year Contract.

iPhone – 32,000 (1time payment)
Monthly Bill – 800 (with Data) = 800 x 24 = 19,200
Monthly Bill – 200 (without Data) = 200 x 24 = 4,800
So, min. cost in 2 years = 32,000+4,800 = 36,800
And avg cost in 2 years = 32,000+19,200 = 51,200

Now Lets see how much an iPhone user in US pays in 2 years:
iPhone – $199 = Rs.10,000 (aprox)
MonthlyBill (min) = $70 = Rs. 3,500 -> 3,500×24 = Rs. 84,000
MonthlyBill (avg) = $130 = Rs. 6,500 -> 6,500×24 = Rs. 1,56,000
So, min. cost in 2 years = 10,000+84,000 = Rs. 94,000
And avg cost in 2 years = 10,000+1,56,000 = Rs.1,66,000

So, by looking at the above figures I don’t think iPhone is costly in India. Rather its cheaper in India in long run. Also, any new high tech smart phone in market by Nokia and Palm cost no less than 30-35k so, i feel the pricing is just for iPhone. Its just that Vodafone and Airtel need to come up with some good data plan. to launch Education Platform, MySchool

..have also burnt my fingers doing something for the school…went to schools with
i) Student profiling
ii) Traits management
iii) Answering ability (various catagories)
iv) Teacher allocation
v) Net based attendance viewing
vi) Automated question generation
vii) financial module…etc.,etc.,

finally what they wanted was finance management module for Rs 5000/ closed the entire project after burning 10-12 lacs. 5-years back…. hope the scenario has not changed much.

By Kasi.


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