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Well the same thing applies. WeWork can step in and allow Netflix and a hedge fund to save money on a floor in a remote destination where both companies don't k

Well the same thing applies. WeWork can step in and allow Netflix and a hedge fund to save money on a floor in a remote destination where both companies don't know anything about the region except for how many people they plan to employ there. When one of them needs a bigger office, they move out and another company moves in Again Netflix is equipped to have office managers, find people/firms to scout nice neighborhoods to remote cities, and stock kombucha, but all of this requires hiring people to do a job that Netflix fundamentally doesn't care about. WeWork will save money for companies not ready to commit to long term leases, and it will certainly save time for companies that don't want to have to think about this

kolbe 7y ago
What I'm pointing out is that Netflix is not equipped to manage a shared server marketplace. They don't manage their own servers because Amazon/Google can do it more effectively for more reasons than expertise. You seem hung up on the idea that companies just want to give up money to pay other people to do stuff they don't like. A better analogy may be legal work. Law firms offer a way to use lawyers as companies need them, and to share these resources among multiple companies. But all corporations still hire in-house counsel to fulfill the needs they know that they have. None of them say "analyzing law isn't our expertise, so we exclusively use law firms." But almost all of them use law firms, because there are niche specialties that aren't worth hiring for, and times when more lawyers are needed to handle a particularly heavy load. WeWork can definitely fulfill similar analogous roles in real estate. When Facebook has three people who wants to work remotely in Missoula, co-working spaces will win their business. But Facebook is never moving its campus to WeWork, and any startup with over 50 people and decent funding will realize how unnecessarily expensive it is to use a coworking space, and cut out the middle man. What's left is not a $1T/year business.
- deleted 7y ago
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- julianozen 7y ago
  https://www.bizjournals.com/sanjose/news/2018/06/21/facebook-wework-mountain-view-lease-campus.html https://www.bizjournals.com/sanjose/news/2018/06/21/facebook...

kolbe 7y ago

What I'm pointing out is that Netflix is not equipped to manage a shared server marketplace. They don't manage their own servers because Amazon/Google can do it more effectively for more reasons than expertise. You seem hung up on the idea that companies just want to give up money to pay other people to do stuff they don't like. A better analogy may be legal work. Law firms offer a way to use lawyers as companies need them, and to share these resources among multiple companies. But all corporations still hire in-house counsel to fulfill the needs they know that they have. None of them say "analyzing law isn't our expertise, so we exclusively use law firms." But almost all of them use law firms, because there are niche specialties that aren't worth hiring for, and times when more lawyers are needed to handle a particularly heavy load. WeWork can definitely fulfill similar analogous roles in real estate. When Facebook has three people who wants to work remotely in Missoula, co-working spaces will win their business. But Facebook is never moving its campus to WeWork, and any startup with over 50 people and decent funding will realize how unnecessarily expensive it is to use a coworking space, and cut out the middle man. What's left is not a $1T/year business.

deleted 7y ago
[deleted]
julianozen 7y ago
https://www.bizjournals.com/sanjose/news/2018/06/21/facebook-wework-mountain-view-lease-campus.html https://www.bizjournals.com/sanjose/news/2018/06/21/facebook...