I respect the hell out of this author but this article to me fell a little short of his usual rigor/insight. Two points I would’ve like to see him analyze give

I respect the hell out of this author but this article to me fell a little short of his usual rigor/insight. Two points I would’ve like to see him analyze given the AWS metaphor 1) gross margins - this article reports 15-20% not 30% AWS https://news.crunchbase.com/news/gross-margins-wework-and-the-public-comp-question/ https://news.crunchbase.com/news/gross-margins-wework-and-th... Maybe AWS was able to improve GM over time and the author expects similar trend but he should explore this given the whole biz is built around variable income. 2) comparing the core competency between AWS and WeWork. He only gives this lip service and assumes the two are the same but I don’t agree. I buy the argument that There’s core competencies in server management. In the old days servers were pretty basic - you buy, install, and turn on. Done. But then companies realized all that fixed supply was expensive so they made server supply dynamic, being able to dial up and down on short notice. That, plus integrations with lots of dev tools, necessitated a lot of software on top of the hardware. So now a company can invest precious engineers in managing that, or can use AWS or Google cloud, where the fixed costs of developing that software scale infinitely. Plus add on new requirements around security, etc and it’s a lot for a company to manage in house. Compare this to office space. The fixed cost of lease is NOT scalable (only so many people you can fit in a building), and the core tasks of managing an office are...basically the same as they’ve always been. Sure you have some new design trends and IT requirements, but it’s slow moving. And who manages office space? HR and IT, which while valuable, aren’t forcing companies into trade offs between working on that or new product features / revenue driving opps. I definitely agree wework is valuable for the flexibility. I just don’t really see mass adoption from large companies in the long term. Sure some large company may temporarily use them when they enter a new market but they will revert to managing themselves once they feel confident in signing their own lease.