Technology
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They could save a lot on infrastructure costs if they decentralised their network and stopped using phone numbers as unique identifiers.
How?
Quote from the blog post:
Registration Fees
Signal incurs expenses when people download Signal and sign up for an account, or when they re-register on a new device. We use third-party services to send a registration code via SMS or voice call in order to verify that the person in possession of a given phone number actually intended to sign up for a Signal account. This is a critical step in helping to prevent spam accounts from signing up for the service and rendering it completely unusable—a non-trivial problem for any popular messaging app.
SMS verification is expensive.
Obviously, running the infrastructure to support the entire user base is also expensive. Decentralized protocols like Matrix sidestep this problem by allowing anyone to host their own infrastructure to use the network. Even if the largest Matrix server shuts down, the network will live on, and people can migrate to another server or host their own. This distributes the costs and allows for different business models to support those costs -- commercial, non-profit, cooperative, whatever. Corporations can (and do) host their own Matrix servers for their employees, for instance. I wouldn't be surprised to see universities do the same, like they frequently do with email.
There's an IETF internet standard for federated messaging called XMPP. Just be compatible with the standard. It also allows for extensions if you offer more than the core spec.
November 9th, the verge: Signal tests usernames so you can avoid sharing your phone number
the phone number is still going to be required for making an account, you can just choose to not share it with others and give them your username instead.
In total, around 50 full-time employees currently work on Signal
[...]
When benefits, HR services, taxes, recruiting, and salaries are included, this translates to around $19 million dollars per year.
That's 380k/employee on average. Even if half of that went to taxes and other expenses, on average they're paying their employees around 190k/year.
Bro, as a European dev, that's triple my salary! They could possibly double or triple their workforce if they hired from outside of the US.
When running a business, you need to budget 3x salary for actual TCO of a staff member:
1x covers their direct salary 2x covers retirement fund, electricity, office space, and infrastructure items unlike server and laptops for corporate use etc.
The 3x multiplier is for when you're a services company, and that represents a possibly profit margin.
So for signal, your $380k becomes $190k which in my experience is average for a US tech sw dev at a mid to early senior level.
I donate to signal monthly and I have no problems with the costs they're posting. I work in SV tech and I've seen 20x worse numbers.
I’m extremely curious where you get those numbers from, I operate businesses and that doesn’t pass the sniff test.
I've used the 3x multiplier for staff planning at services companies since the early 2000s.
Perhaps there are regional differences, but they've rung true for planning billable rates of return at every services company I've worked at in the last 20 years here in AU.
I realise that the services aspect isn't relevant, but having the sum of indirect staff costs equivalent to staff salary cost when office space is involved isn't a massive stretch in my experience. (Indirect costs would include office rent, utilities, infrastructure and a share of shared functions such as IT, HR, facilities etc...)
As an American dev, you should check out other silicon valley salaries. After hearing what some folks there make 190k doesn't make me bat an eye.
Is it just me or is $19 million per year for 50 full-time employees insane?
Even for US salary standards.
My guess: People who can be as competent with security as they need are very expensive.
Role of thumb is an employee costs roughly twice their base salary, as the employee still needs to cover insurance, taxes, sick time, and other benefits.
That leaves an average salary of 190K for the 50 employees. That isn't much for tech.
Not at all. That's $380K per person if everyone is making the same. Engineers with a few years of experience at Meta make $400K+.
Don't forget the employer taxes, insurance, recruitment costs and so on. It wouldn't surprise me if the employees are earning on average half that.
Would be interesting to see how this compares to XMPP or Matrix. Obviously the development costs something for each of those, but the hosting costs are spread out across each of those hosting an instance.
Yup, that's a big reason why centralized protocols aren't sustainable. XMPP is 25 years old (which is older than almost anything else on the contemporary internet) and thriving. Unfortunately, judging by the cycle of messengers coming and dying, and people still being eagerly part of that, this isn't something that people value very much.
They should do a charity stream event or something. Do Q&A stuff, get interest of more people, and raise money?
Are decentralised apps like element much less expensive ?
The costs are distributed as there is not one single instance. Just like with Lemmy.
Although there is one huge instance on matrix (matrix.org), a bit like lemmy.ml here. But it doesn't have to be like that, they can close signups or discourage them similar to the way lemmy.ml is doing that now.
The load distributes across more shoulders automatically.
If you only host a server for yourself and 10 friends it costs next to nothing, if you have a big operation it can get just as expensive, it depends on what you are willing to do.
With centralized systems there is no choice but for the one centralized host to host everything.
Then is it better to use element over signal as decentralised apps may be more sustainable for long term use ?
Element has the same costs as Signal. So far, Element has been lucky in being able to raise money by selling support contracts to governments or companies using Matrix, but even that isn't enough, which is why Element has been raising money for the Matrix Foundation for almost a year now (with little success).