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submitted 1 year ago* (last edited 1 year ago) by fer0n@lemm.ee to c/technology@beehaw.org

We estimate that by 2025, Signal will require approximately $50 million dollars a year to operate—and this is very lean compared to other popular messaging apps that don’t respect your privacy.

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[-] onlinepersona@programming.dev 32 points 1 year ago

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.

[-] snrkl 24 points 1 year ago

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.

[-] bradorsomething@ttrpg.network 10 points 1 year ago

I’m extremely curious where you get those numbers from, I operate businesses and that doesn’t pass the sniff test.

[-] snrkl 6 points 1 year ago

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...)

[-] Zworf@beehaw.org 2 points 1 year ago* (last edited 1 year ago)

3x is too much tbh. It's more like 2x in total, at least going by european points of view - I don't know what would make the US more expensive though with even less welfare. And office space in these days is a diminishing cost of course with all the hybrid/remote options. Laptops cost is pretty negligible. I think Signal does have a lot of hosting costs though.

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this post was submitted on 03 Dec 2023
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