[HN Gopher] Ask HN: Why is Docusign a $50B company?
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       Ask HN: Why is Docusign a $50B company?
        
       I have been searching for a solution to e-sign some lease
       agreements. It is something that I need to do maybe once a year and
       the only thing I need is a legally binding way to put signatures
       and timestamps on a PDF. I do not need any fancy features.  I was
       doing research, and it seems like most document signature companies
       all charge monthly subscription fees! This does not work for me as
       I am not using the platform on a monthly basis.  Are there free,
       open source alternatives to Docusign? If so, why do more companies
       not use them?
        
       Author : akouri
       Score  : 32 points
       Date   : 2021-11-27 21:47 UTC (1 hours ago)
        
       | codingdave wrote:
       | > legally binding way to put signatures and timestamps on a PDF.
       | 
       | IANAL, but the idea that a signature is what makes a contract
       | legally binding is not exactly true. It is a symbol of the
       | acceptance of the contract, but legal acceptance can take many
       | forms - so whether you use a service to signify acceptance, or
       | just sign it using acrobat or Adobe's site, or even just a verbal
       | agreement... those are all valid acceptance, legally speaking.
       | 
       | DocuSign's use case is not the signing, but the management of
       | those documents and signatures - tracking which documents are
       | sent, which have been read (yes, the doc owner can get notified
       | when you even look at a Docusign document), which have been
       | signed, and being able to store copies of signed docs. It is
       | mostly for the companies sending you contracts, not for you as
       | the signer.
        
         | dsizzle wrote:
         | I've signed PDFs digitally overlaying a digital version in
         | Preview on a Mac, which is free -- for all parties. I'm not
         | sure if there's more legal wiggle room for that version vs
         | Docusign or not.
         | 
         | But yes, as noted, DocuSign has other features.
        
         | cyanydeez wrote:
         | id also bet their backend does all kind of fingerprinting of
         | who/what signs a document to ensure they can make the
         | electronic signature defensible.
        
       | arrakis2021 wrote:
       | Enterprises generally don't want or care about open source
       | software.
        
       | Seanambers wrote:
       | I just use the PDF sign feature which basically adds a picture of
       | my signature to the document.
       | 
       | No one has noticed so far :=)
        
       | SavantIdiot wrote:
       | Because the market is batshit insane right now. Been investing
       | for 30 years (started right after the Savings and Loan Scandal
       | bust in the late 80's), and the insanity dwarfs the Dot Com
       | bubble. People who don't understand the basics of investing
       | always joke about how it is a casino, and that was always a
       | little true, but now it is massively true.
        
       | roeschger wrote:
       | First a disclaimer: I am no lawyer, but I am one of the co-
       | founders of Skribble[0], an e-signature provider from
       | Switzerland.
       | 
       | I don't want to go into details but depending on which country
       | you need your signatures to be legally binding and the type of
       | contract you are signing, you might need a higher signature
       | standard than the one you get from DocuSign.
       | 
       | At Skribble we offer all 3 signature standards defined by the
       | European law. The lowest standard is very similar to what you get
       | from DocuSign.
       | 
       | Also, at Skribble you get 2 signatures per month for free and a
       | pay-as-you-go model for individuals.
       | 
       | I'd be happy if you give it a try at [1].
       | 
       | [0] https://www.skribble.com/en-eu/ [1]
       | https://my.skribble.com/signup/
        
       | revorad wrote:
       | I use https://www.signwell.com. It works really well and the free
       | tier is enough for infrequent use.
        
       | tylermenezes wrote:
       | Most of the documents people e-sign are related to business deals
       | (contracts, NDAs, etc) or HR (offer letters) which are such high
       | dollar value transactions that the cost of e-signing is
       | negligible.
       | 
       | Your use case unfortunately is just not worth it to them in
       | comparison.
        
       | brianwawok wrote:
       | Sign a piece of paper and scan it. No cost.
        
         | ipince wrote:
         | Who has scanners (and printers) these days? And going to Fedex
         | to print/scan is a cost too.
        
           | throwaway2048 wrote:
           | take a picture of it
        
         | nwatson wrote:
         | Docusign and other services like it do more than send out forms
         | to collect signatures. There often are other fields / data
         | collected, alternative forms of documents presented depending
         | on target party's profile, etc. If you take the sign/scan/send
         | form, the receiving company still needs to do all the work to
         | put that form in the right place and perhaps extract further
         | data for further steps in some data pipeline. Docusign et al
         | will presumably integrate straight into your document flow,
         | much simpler in the long run with fewer people.
         | 
         | Just to put one alternative company into the fray, there's
         | Docsmore (https://client.docsmore.com/features.html), a local
         | startup (North Carolina) that offers document management /
         | signing / document flow as a service. I'd imagine it would be
         | hard to go up against a giant like Docusign unless there are
         | compelling additional features.
         | 
         | The Docsmore founders seem to have more recently used the
         | service as a jumping-off point for a separate insurance claims-
         | processing automation company, Benekiva
         | (https://www.benekiva.com/) (Iowa/North Carolina). That seems
         | even more lucrative than straightforward document signing/data-
         | collection.
         | 
         | EDIT: I have no relation to the company, I've met some of the
         | founders before
        
       | vsenko wrote:
       | Now really sure that it'll help you, but in Kazakhstan digital
       | signatures can be legally significant (have equal significance as
       | hand-written signatures) in case if several requirements are met.
       | 
       | One of the requirements is that certificate has to be issued by
       | accredited CA. And there is one such CA - National CA
       | (https://pki.gov.kz/), it issues such certificates for free.
       | 
       | Also there is a service that allows anyone to sign any file using
       | a certificate issued by National CA - https://sigex.kz, thus
       | making it legally significant. It's free for use (except for
       | heavy RPS enterprise users and the ones, how need support).
       | 
       | So in Kazakhstan you can do e-docs signed by e-signs totally for
       | free.
       | 
       | P.S.: Pardon, but the links are in Russian.
        
         | DyslexicAtheist wrote:
         | The KZ government PKI has had quite the history:
         | 
         | - Kazakhstan man-in-the-middle attack
         | https://en.wikipedia.org/wiki/Kazakhstan_man-in-the-middle_a...
         | 
         | - "Certificate cannot be trusted" warning in Kazakhstan
         | https://support.mozilla.org/en-US/kb/certificate-cannot-be-t...
         | 
         | - Kazakhstan Attempts to MITM Its Citizens
         | https://www.f5.com/labs/articles/threat-intelligence/kazakhs...
        
       | tibbetts wrote:
       | Because there is a natural monopoly in being a trusted provider
       | of legal transaction services. Both for integrations and for the
       | fact that no one wants to risk their job saving a few dollars on
       | digital signatures. And no one wants to explain to a future
       | acquirer / legal inquiry / judge / whatever that they are using
       | some weird alternative. "We process the contracts with Docusign"
       | is a safe thing to say. If that wasn't good enough, a whole lot
       | of other people would also be in trouble, so the collective
       | hallucination that is our legal system will support it.
        
         | runnr_az wrote:
         | 100% agree. We looked at sourcing different providers for a
         | project, but for things involving trust, the known brand is an
         | easy choice.
        
       | programmarchy wrote:
       | esignatures.io could be a nice solution. I've used them for
       | client projects and they have a simple API, too. They have a
       | $0.49 per contract pricing model.
        
       | funstuff007 wrote:
       | A Docusign hack would be downright amazing. Among other things,
       | you'd probably get to see how much big oil pays direct to
       | dictators, or (more likely) the entities they control.
        
         | salade_pissoir wrote:
         | It seems unlikely that a big oil company would rely on Docusign
         | for serious skulduggery. They'd send couriers and the like for
         | that.
        
       | tgsovlerkhgsel wrote:
       | My guess - DocuSign has a hard to penetrate moat: It's known and
       | accepted in courts. Everything else doesn't really matter.
       | 
       | Imagine you're a legal department. You have to choose between
       | DocuSign, which you know the court will accept, or a competitor.
       | DocuSign costs 10x as much as the competitor. But that's nothing
       | compared to the cost of litigation, or worse, the cost of losing
       | litigation. So you will likely choose DocuSign anyways.
        
       | rightisleft wrote:
       | Unrelated to open source, but DocuSign is literally one of the
       | examples i list when explaining why the tech sector is over
       | bought. They've tripled their market cap since the beginning of
       | the pandemic, and while there is some merit to work from home,
       | their moat is laughable. There are plenty of alternatives to
       | DocuSign that should make share holders terrified... Adobe Sign,
       | Panda Docs, HelloSign - i wouldn't even bet against notarize.com
       | 
       | Someone is going to roll a decentralized ID system on blockchain
       | and tank this whole sector...
        
       | mtlynch wrote:
       | I haven't found free, open-source solutions, but HelloSign[0] is
       | a decent solution if you only need to sign documents a few times
       | per year. Their free tier supports three documents per month.
       | They make it look like they only have paid plans, but you can
       | sign up without a credit card for a free tier.
       | 
       | [0] https://www.hellosign.com/
        
       | GDC7 wrote:
       | Oh it's a long story...where to begin?
       | 
       | It all started in 2006 when the economy grew at 6.6% in Q3 and
       | the Fed still claimed that not tightening was a great insurance
       | policy.
       | 
       | Fast forward:
       | 
       | Subprime crisis
       | 
       | Bernanke says "subprime is contained"
       | 
       | Subprime was not contained
       | 
       | Wheels come off in 2008
       | 
       | Everybody runs away like chicken with their heads cut off
       | 
       | Everybody goes back to Bernanke asking for solutions
       | 
       | Bernanke proposes QE, something that he claims "works in
       | practice, but not in theory"
       | 
       | Slow recovery
       | 
       | More panic
       | 
       | More QE
       | 
       | Temper Tantrum
       | 
       | More QE
       | 
       | 13 years of regular QE
       | 
       | 2 years of QE on steroids due to COVID
       | 
       | Asset prices only go up
       | 
       | Everything bubble
       | 
       | And here we get to the current scenario where scam companies are
       | worth trillions and Docusign is worth 50B
        
         | smcl wrote:
         | What scam companies are worth trillions?
        
       | teeray wrote:
       | A zoom recording with a witness involved maybe?
        
       | xn wrote:
       | I don't know what's legally binding in your jurisdiction, but in
       | the US, scribbling on a PDF will suffice for most purposes.
       | xournal++ is a free tool that will support this.
        
       | asdfasgasdgasdg wrote:
       | I paid for DocuSign's annual fee the year I bought my house
       | because it was just that much easier to sign everything
       | electronically. The only documents I signed in person were at the
       | closing. Everything else was done electronically, which was
       | beautiful.
       | 
       | I have to admit, over the past two years I've run into two pieces
       | of professional software that made me think, dang, this thing
       | actually works and is a material improvement on the old state of
       | affairs. One was Fusion 360 and one was DocuSign. (I say this as
       | a casual user of both relevant categories of software.)
        
       | 960design wrote:
       | The US has had an Electronic Signature law since 2000:
       | https://www.govinfo.gov/content/pkg/PLAW-106publ229/pdf/PLAW...
       | 
       | tl dr; Typed signatures are legal in a digital form if the form
       | states this is a signature block. There is no need for a third
       | party such as docusign.
       | 
       | Further verification standards have been adopted, but not
       | required, to identify typed signatures. The most common is the
       | leading "//". So my legal signature would look like this:
       | 
       | //William Hagan
        
       | potatolicious wrote:
       | As with many situations with enterprise software vs. roll-your-
       | own solutions (FOSS or otherwise): reliability, responsibility,
       | and liability are the reasons.
       | 
       | Most enterprise software is purchased to do something the company
       | requires, but is not within the company's actual line of
       | business. Payroll, tax calculations, identity verification, etc.
       | 
       | In these cases "cheap" is not very important so long as the
       | solutions are cheap _enough_ relative to the value of what the
       | company 's business. This is also why companies routinely
       | contract out vast amounts of work to highly-paid lawyers - paying
       | someone six figures to do work on a deal that's worth 9 figures
       | is a rounding error, and is not a cost worth optimizing.
       | 
       | More importantly, the third party provides two important pieces:
       | responsibility and liability. Docusign is on the hook if they
       | fail to validate the signers' identity, and if anything goes awry
       | Docusign is on the hook for fixing it. These are features, not
       | bugs, to enterprises who need a function performed but really do
       | not want the liability or responsibility around it.
       | 
       | This is similar to why tech companies outsource to cloud services
       | rather than run on their own metal.
        
         | ineedasername wrote:
         | _> and is not a cost worth optimizing._
         | 
         | Well, it's kind of like plumbing. Once established, you don't
         | think about it much until something goes wrong. Maybe someone
         | notices, "Hey, our annual maintenance is $x, but I think the
         | normal rate is only $x-y."
         | 
         | But unless it's time for a lot of belt tightening, making that
         | change is pure risk if the system mostly works, problems are
         | fixed quickly, etc. Because maybe you change plumbers, and
         | there's a catastrophic failure _that would have happened
         | anyway_ , but now via the magic of post-hoc fallacies it looks
         | like the change is what caused the problem. (And maybe it did!
         | who knows?)
         | 
         | So there are many things in any organization that only get
         | optimized/updated (or even just simple maintenance) when they
         | become a noticeable problem. The old adage about not fixing
         | what isn't broken-- you need to really be able to show a likely
         | failure in order to make a preemptive change.
        
           | ineedasername wrote:
           | As a side note, this can be a good thing. When a certain
           | amount of change aversion isn't maintained, you get change
           | for change's sake. Organizationally, you get every new
           | manager trying to "make their mark" on things. Individually,
           | you get developers trying to add "migrated product to $X
           | shiny new framework" to their resume for their next job hop
           | in 2-3 years.
           | 
           | But many/most of us have probably also worked in environments
           | that were far too conservative about changes, so that may be
           | the more common problem.
        
       | kosolam wrote:
       | So why is it 50b company?
        
       | [deleted]
        
       | niftylettuce wrote:
       | Working on an open source alternative, email me at
       | niftylettuce@gmail.com if you want to try the beta.
       | 
       | We're the team behind https://forwardemail.net
       | 
       | Everything 100% transparent, open-source, privacy-focused, with
       | fair pricing
        
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       (page generated 2021-11-27 23:00 UTC)