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I'm not talking about growth though, I'm talking about marginal cost per service rendered. To serve twice as many people in a restaurant you need roughly twice
by pavas 5y ago
I'm not talking about growth though, I'm talking about marginal cost per service rendered. To serve twice as many people in a restaurant you need roughly twice the servers. You don't need twice the amount of programmers (and other workers) to serve Netflix to twice as many people.
- 1vuio0pswjnm7 5y agoYou are talking about the internet, though, which has experienced non-linear growth and obviously allows for an new means of communication and distribution. (Eventually it will not be "new" anymore.) Feel free to provide an example of a "tech" company that uses software automation to decrease marginal cost without relying on the internet for communication/distribution.
- 1vuio0pswjnm7 5y ago"I'm not talking about growth though, ..." The definition you provided included this bit about "(thereby scaling non-linearly)". If actual growth does not matter and the only criteria are marginal cost reduction and automation that requires software, then why mention "scaling". "Tech" companies are like pyramid schemes.^1 Unless there is growth, the "business" does not "work". This might have something to do with the fact that most of these companies do not generate enough revenue to survive, and rely on investment rounds to pay peoples' salaries. 1. Every participant had to recruit six new participants for the scheme to see any return from their own investment. "Tech" companies are not self-sustaining, they cannot draw the requisite investment to survive, without "non-linear" growth.