Wednesday, June 17, 2009

Forecasting Growth and Infrastructure

We received some bad news today... Google's AppEngine team contacted us to let us know that our "special elevated free quota" will revert back to the standard free level in a few weeks & we'll be billed for any overages. AppEngine's resources were a huge part of plan & the elevated levels were very important to seeking profitability with gpsAssassin. Now that its gone, I had to go back and run the numbers again.

Over the past week, things have settled down with our metrics. The 'pirated software' frenzy has diminished to less than 30 per day and the existing players are falling into a nice rhythm. Using resource averages over the past three days, I modeled a forecast of 10x and 100x growth.



  • Total Users: All the players that have signed up to date
  • Active AVG: Daily average of Active Players
  • Total to Active: Ratio of players that are playing at any given time
  • CPU Hours: Based on current usage, total CPU Hours used on AppEngine
  • CPU Free: Google provides 46.3 CPU Hours for free (thank you!)
  • Over / Under: Represents our demand as compared to the Free Level
  • Daily Cost: Multiplies our Over/Under CPU Hours by $0.10 per AppEngine pricing
  • Monthly Cost: Anticipates 31 days of the Daily Cost

Based on CPU usage, we're very close to paying for resources already with just a soft launch! When we go free & start promoting, I fully expect thousands of players to flock to the system - especially with the viral 'recruiting' nature of the game. Achieving a 10x growth will happen quickly, and the 100x may not take long either. We can handle $285 per month, but the $4K per month is a huge expense.

The trick to this whole equation is balancing against revenue. Unfortunately, we don't know how users will adopt our 'in-game' transactions and Offer system. This lack of clarity/knowledge puts us in a precarious 'chicken or egg' situation. At this point, we have to prepare for the expense and hope the revenue works out... Ironic since I've said "hope is not a strategy" at least 100x in my life :)

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