Following discussions triggered on another question: let's imagine a small start-up company who has to decide what to do with its capital. Two suggestions are made:
a) The company spends capital on a good sys admin, but takes the risk of not having enough work for him full-time (at least at the beginning). So, it is not an perfect allocation of capital.
b) One suggests to delegate sys admin work to a 3rd party company (at least at the beginning) and spend more of the money on software engineers. It looks like better allocation of capital, but is it really? One is taking risk by not having 'control' and quality on sys admin work. Plus can one trust a 3rd party to run servers containing critical info?
Has anyone ever attempted option b)? Was it successful or not? Was it worth it? Would you recommend it?