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There is a logic to the hyper growth style in software. Software products’ success are driven by network effects: the more users you have, the more features/int
by pm90 3y ago
There is a logic to the hyper growth style in software. Software products’ success are driven by network effects: the more users you have, the more features/integrations you support etc.
And if you don’t dominate the market, a more hungry competitor absolutely will. Software products can be developed incredibly quickly.
It is capitalism at its best (or worst, depending on how you see it). While it might be desirable to work in a more stable setting, without some kind of regulatory protection or stickiness this is hard to achieve in practice.
- arp242 3y agoFor some B2C products that's true, but for most of B2B products it's not, and it's not for a lot of B2C either.
- imiric 3y agoIn most service oriented companies, the number of users and even revenue can experience growth, while the number of employees remains relatively constant. This only stops being true at hyper scale, where maintenance problems become more difficult, but even then the employee growth doesn't have to be proportional. What I find objectionable is the constant focus on unbounded growth, and that that is somehow a signal of a healthy company. This is usually the case in VC funded companies, which is not the only way to build a business. It might be the quickest and easiest, but it creates an environment where wrong incentives can thrive.