Hoffman’s Rule

Jason Hoffman:

A common rule of thumb I tell people is to target their performance goals in application design and coding so that their infrastructure (not including people) is ≤ 10% of an application’s revenue.

Meaning if you’re making $1.2 million dollars a year off of an online application, then you should be in area of spending $120,000/year or $10,000/month on servers, storage and bandwidth.

Monday, 5 February 2007