Many have already exhausted the majority of their resources in the wrong places at their networks’ expense. Inevitably, they are unable to keep up with the competition and either collapse under an attack or can’t maintain performance standards.
Reston, VA (PRWEB) May 24, 2016
Throughout the first two quarters of 2016, DNS Made Easy has seen an increase in new clients specifically from VC-backed startup companies. President of DNS Made Easy Steven Job speculates that, “As the funds dry up, companies will be unable to throw money at overpriced DNS solutions. We have heard from multiple new clients that this is exactly why they have made the switch to our managed DNS services.”
Financial and business experts have long anticipated a second tech bubble, following the rise and fall of the dot-com boom in the early 2000’s. Recently, the experts have noted the possibility of an impending burst in 2016, as VC funding drops and investors are beginning to demand for profitability. According to Inc Magazine, “historically bubbles have occurred when… the last money in is highly unlikely to realize a return that justifies the risk it has taken.” (Source)
These new apprehensions are forcing VC funded companies to reevaluate their spending and redirect their resources into more affordable services. Some analysts have taken to correlating the downward trends in leisurely activities as an indicator of the imminent bubble burst. The most notable of studies tracks ping pong table sales as an indicator of the startup tech market in San Francisco. (Source) While this may be a stretch, the allocation of resources away from leisure, and presumably into R&D, may indicate a sinking trend for these startups.
Many of the top tier managed DNS providers are VC funded, some still offering “free-mium” services. The problem is, these companies don’t realize that they need to become profitable until it’s too late. “Many have already exhausted the majority of their resources in the wrong places at their networks’ expense. Inevitably, they are unable to keep up with the competition and either collapse under an attack or can’t maintain performance standards,” says Job.
DNS Made Easy has remained steadfast in its mission to remain a private company, completely reliant it’s own profits for sustainability, with no outside funding. The company also refuses to hire a sales team, unlike the majority of VC backed companies, which invest the vast majority of their funding on marketing related expenses. Job asserts that his decision to focus on organic growth has not only kept prices down, but gives clients total pricing transparency, without having to haggle with a sales representative.
About DNS Made Easy
DNS Made Easy is a subsidiary of Tiggee LLC, and is a world leader in providing global IP Anycast enterprise DNS services. DNS Made Easy implemented the industry’s first triple independent Anycast cloud architecture for maximum DNS speed and DNS redundancy. Originally launched in 2002, DNS Made Easy’s services have grown to manage hundreds of thousands of customer domains receiving more than 30 billion queries per day. Today, DNS Made Easy builds on a proud history of uptime and is the preferred DNS hosting choice for most major brands, especially companies that compare price and performance of enterprise IP Anycast alternatives.