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This does not only apply to consumer software. I was just thinking that the past decade of business software has been about connecting off-the-shelf saas and cl
by BenoitEssiambre 7y ago
This does not only apply to consumer software. I was just thinking that the past decade of business software has been about connecting off-the-shelf saas and cloud systems together to run businesses.
This was good for businesses wanting to quickly get onboard new technologies but it has real downsides because all these systems are scattered across the world and managed independently, making them more distributed, less transactional (more corruptible) and less tailored to the specific industries they're used in.
Overly distributed systems are fundamentally hard and fundamentally inefficient ( https://groups.csail.mit.edu/tds/papers/Lynch/podc89.pdf https://groups.csail.mit.edu/tds/papers/Lynch/podc89.pdf ). Data that spends more time in memory and cpu cache instead of being thrown over global networks can be processed a lot more efficiently.
Also, if your infrastructure is made of a lot of components that anyone can buy, it's much likely for competition to emerge. You lose an important moat. Plus, oftentimes, the outside organizations holding your data can leverage it to make you pay high prices.
The next decade might be about recreating the logic of these cobbled together generic saas systems into streamlined and fully tailored software systems for each industry. There is now a lot of mature open source code for companies to use as a foundation.
As the article suggests, this could also allow moving towards fully owning data and stack instead of having too much in other companies' platforms. There is probably more incentive for this reshoring of data and software to happen for businesses so it might happen there before it does for consumers.
- jarvuschris 7y agoAnd to add to that, the more generic saas systems you cobble together, the shorter the likely time window until one of them gets acquired/folds/pivots and disrupts you Invested in building your workflow on a SaaS system and it's become critical to your business? It doesn't matter how much you depend on it, or how useful it is to you, you have _no rights_ that top the backers' playing their numbers This effect gets worse the closer to the ground you get, where small orgs don't have the technical capacity to absorb such disruptions. Small orgs are being conditioned to avoid depending on technology, or at least to avoid depending on specialized technology. The net effect this will have is creating yet another bias towards concentrated power winning in the marketplace
- erikpukinskis 7y agoCompetitive moats are evil. Learn a trade. Be useful. Save your money. You don’t need a moat if you’re useful and have savings. By building moats you are selling our children’s future to corporate scavengers.
- BenoitEssiambre 7y agoKnowledge and ability is a type of moat. That's why it allows you to get paid a premium.
- deleted 7y ago[deleted]