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Lower IT costs drive New York startup surge

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The plummeting cost of hardware and software have been driving a surge in New York startup activity, according to James Robinson, managing partner of RRE Ventures.

The information technology tools that once required large numbers of IT workers and the space to house them have given way to inexpensive open source software and cloud computing services. Plus, many of those services are being baked right in to the way companies do business, he wrote in a post on Business Insider.

“It is simply no longer true that technology companies must be located near technology centers. Today, the optimum strategy often puts these companies near business centers, where the customers are,” he wrote.

Starting an online venture in the city has become so much easier than it was just a few years ago. This past weekend, 145 would-be entrepreneurs spend a mere 48 hours taking their business ideas from concept to reality as part of Startup Weekend NYC, an event put on by Seattle-based non-profit Startup Weekend.

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