Paper Example Undergraduate 494 words

Cost Structure of Typical Internet Company

Last reviewed: November 20, 2010 ~3 min read

¶ … medium level internet company will be analyzed. The example chosen is an online dating site serving for around 100.000 users. Even if the company is managed online the emerging need is certain numbers of employees to deal with costumer issues and also maintain the company. Recruiting the right people who take their seriously and enjoy what they are doing is the first step to save some money (5). Therefore, it is very important to use a HR company. Marc Mapes (8) who is the owner of HireMatch reported that the wrong people can cost a company 2.5 times more than their salary. Using a new generation HR company which analyses the jopseekers not only based on their CV but their life style and ideology.

Another important cost for an internet company is the webpage. Nowadays, there are too many web developing companies offering promotions and inexpensive services. However, these are necessarily to best options to save money. An aesthetic, user friendly, simple but trustful image of a web page will save money (6, 9). Most people want to click a couple of buttons and reach to the point what they want. An online dating site should look trustful not only that the users will make the online payments but also they will provide their private information. A professional internet company can provide all requirements together. Although those companies ask for more money, the maintenance cost and the number of users will close the cost gap between the companies offering a lot of promotions and a professional web developing company.

The other cost for a dating company would be server. One of the biggest server companies is Rackspace providing server services for many U.S. Companies. The advantage using a company like Rackspace is that the same company provides the maintenance for the services for a discounted price. Rackspace provides cloud services per hour therefore it would be easier and more economic to spin up a new server without any additional cost. The cost per hour is 1.5 cents plus bandwidth (4).

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PaperDue. (2010). Cost Structure of Typical Internet Company. PaperDue. https://www.paperdue.com/essay/cost-structure-of-typical-internet-company-122500

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