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I love how all over the map the comments are.

There are so many vectors for comparison, it's ridiculous to try to generalize it. Seriously, different startups today cost several orders of magnitude different amounts today based on what they are doing.

To make any kind of reasonable comparison, you have to look at specific costs. Sure, processing, memory and bandwidth are way more than 10x cheaper, but applications might eat up a lot of that with additional complexity. Open source software, modern browsers, the rise of REST APIs, and the relatively saturated and savvy userbase mean that some apps today are infinitely better than they were 12 years ago (because they were previously impossible). On the other hand, people costs aren't any cheaper, the optimal size of a dev team hasn't changed, and you'll still need to expend the same amount of effort to compete regardless of how much better all technology products are overall.

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