Ontiveros @ Textdriven

37signals most prominent write up to date probably has to be as inclusion in the Business Week cover story entitled “Speed Demons”. I’ll attempt to elaborate on a few points made in the write up. All of their product offerings utilize open source software, including Ruby, as a platform so it is a given that 37signals doesn’t have the “not created here” syndrome. The framework, which was developed in house by Hansson, in order to cut down on repetitive code would become known as “Rails”.

My interpretation of the framework was that it was created as a process improvement method during the developing of their first web application entitled “Basecamp”. The framework was itself released as Open Source software by Hansson and 37signals for the world to use and improve. By doing so, Ruby on Rails itself became a product. The feedback from Basecamp is from consumers, while the feedback for Rails is from other developers.

The writer states, “There’s a downside to this way of doing business. If one upstart can deliver a new product in a snap, so can others.” 37signals actually encourages this through its release of Ruby on Rails. Also, these new web applications from other companies are showcased here. Note: There have not been any direct competitors to a 37signals web application using their own framework to date however.

Releasing Ruby on Rails has had the additional benefit of making 37signals relevant. Before this, they were just another web development firm. By sharing their innovation freely with the world, 37signals have positioned themselves as innovators and authorities. They maintain control of the rails project as it was created by David Hansson after all. Also, this innovation is pulling mindshare away from competing technologies/products, such as Microsoft’s ASP programming language. In the world of software, you generally want an increase in mindshare for your technologies. Further, this innovation will become part of the platform for the next great innovator to base his work off of. Technology can be very scientific that way.