[elad]

My co-founder and I started out working from our own separate homes, and we experienced a huge surge in productivity once we moved in to a common office. And I mean HUGE. Phones, IM, email, they're all very nice, but nothing beats face-to-face, sitting in the same room, looking at the same computer screen when necessary.

IMO productivity in a team, where the people are working on the same thing (which makes DHH's case irrelevant) goes exponentially down with distance. Measuring the distance in feet vs. miles makes more difference than measuring it in miles vs. thousands of miles.