[shekispeaks]

The Basecamp model has the risk of some other company doing the same thing by taking venture capital and growing by getting more customers. At some point the economy of scale kicks in and the service get cheaper than Basecamp model.

Basecamp could have been slack, but slack ate their cake.

[ljm]

But Basecamp never aspired to be Slack.

They have successfully resisted the pressure to continually expand.

[maehwasu]

This is true, and, in some ways admirable.

The problem is that, for a lot of companies, the endgame is continued midsize existence; it’s death when you stop getting new customers and old ones phase out.

The low marginal cost of software doesn’t guarantee winner-take-all markets by any stretch, but it does apply pressure in that direction.