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That's not how I see it. We don't see a winner-takes-all in things like project/productivity/development/collaboration tools, etc. The fact that the barriers of
by DVassallo 8y ago
That's not how I see it. We don't see a winner-takes-all in things like project/productivity/development/collaboration tools, etc. The fact that the barriers of entry are low make it so! There's no reason to believe that small independent tech businesses can't earn their owners a sustainable FAANG-like salary in tech businesses with low capital needs. It's when there's high capital requirements that we actually get a winner-takes-all, such as with building data centers, or doing highly regulated stuff, etc.
- nostrademons 8y agoJust wait. ;-) Low barrier to entry tends to drive down profits until they're just above the opportunity cost of working anywhere else. FAANG salaries are inflated because those companies have monopolies in their industry, so they make massive profits and can push some small portion of that down to employees to ensure they get their pick of applicants. Economically, the returns to small SaaS businesses without barriers to entry should eventually trend toward the median for programmers in general once sufficient time has passed that they no longer hold a monopoly in their industry.