Glossary
The terms these documents use, in one place. Underlined terms elsewhere link here and show their definition on hover.
- Block
- A fixed-price unit of Engineering Capacity, usually applied over one iteration. Blocks come in three sizes: Flex, Core, and Dedicated.
- Capacity Payout Basis
- Exalynt's compensation value for a Flex, Core, or Dedicated block in an engineer's compensation market. It is set separately from client prices.
- Checkpoint
- The end of an iteration, where Exalynt shows the client what was done and learned, recommends what to do next, and the client decides whether to buy another block.
- Compensation market
- The contractor labor market an engineer is benchmarked against. It sets which Capacity Payout Basis applies. Levels and Engineer Shares are the same in every market.
- Contribution
- What Exalynt retains from a block: the client's payment minus the engineer payout and any direct costs. It is not profit.
- Engineer payout
- What an engineer earns for fulfilling a block: Capacity Payout Basis × Engineer Share. It is agreed in writing before the engineer accepts the work.
- Engineering Capacity
- What Exalynt sells: a bounded amount of Exalynt's attention and expertise, applied to the most valuable work for the client. It is sold in blocks, not hours.
- Exalynt Managed
- The plan where Exalynt operates the client's software in production for a flat monthly fee, with preferred capacity pricing and infrastructure billed at cost.
- Infrastructure pass-through
- Servers, databases, storage, email, SMS, AI usage, domains, and certificates billed to Managed clients at cost, with no markup. It is not Exalynt revenue.
- Iteration
- The period a block is applied over, usually about one week and occasionally two, ending in a checkpoint.
- Level
- An engineer's demonstrated capability and responsibility: Junior, Mid, Senior, or Principal. It sets the Engineer Share and reflects capability, not tenure or location.
- Minimum effort
- The least time engineers dedicate to a block, spent on direct value for the client. Time beyond it goes to finishing hard work properly or to quality.
- Reference range
- The hours of traditional engineering effort a block represents. It communicates relative scale; it is not hours purchased, guaranteed, or tracked.
- Reusable IP
- The libraries, tooling, and frameworks Exalynt brings to every engagement. Exalynt keeps them; clients own the custom software built for them.
- Self Managed
- The plan where the client's own team operates production. Capacity is at standard rates, with no monthly fee.
- Self-funded block
- A block Exalynt buys for its own projects, such as open source, its own tooling, or charitable work. Engineers are paid the same as for client work.
- Sponsor
- The person who acts as the client for a self-funded block: sets the goal, attends the checkpoint, and decides whether to buy the next block.
Frequently asked questions
Why does Exalynt talk about capacity instead of hours?
Clients buy fixed-price blocks, not time. Hour ranges describe a block's relative scale; they aren't purchased, guaranteed, or tracked. See Engineering Capacity.
Is the Capacity Payout Basis the client's price?
No. It is a compensation figure set separately from client prices, so client price changes don't change engineer payouts. See Engineer compensation.
Is the contribution the same as profit?
No. It is what's left after engineer payouts and direct costs, and it pays for running the company before any profit. See How the money flows.