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I think the key bug in gitlab is exactly that: out-of-control costs. One of the key things about moatless models is you do need to keep costs under control. Gi
by frognumber 2y ago
I think the key bug in gitlab is exactly that: out-of-control costs. One of the key things about moatless models is you do need to keep costs under control.
Gitlab has 2,268 employees. That's probably an order-of-magnitude more than they need. With 226.8 employees, they would be wildly profitable. Now, once you take on employees, it's very, very hard to shrink. It takes a lot of disciplines not to overgrow workforce. So I'm not suggesting layoffs or anything specific to fix it.
Regarding costs: Gitlab is $29/month. Github is $21/month (or $4/month).
* If you're spending $200k on an employee, is it really worth saving $300 or whatever per year on tooling? Any difference in productivity will far overwhelm that.
* If a devops employee runs $200k per year, are you going to "host your own" to "save" a few grand?
Much of the market simply doesn't care about pennies, and bottom-feeders aren't super-profitable in either case. Bottom-feeders can be important from a network effects perspective, but for profit, going for the high-margin makes a lot of sense.
Honestly, I have no idea how I'd value gitlab; that's another story. But all else being equal, I'll pick open-source over proprietary. That is a competitive advantage over github.
- nikau 2y ago> Gitlab has 2,268 employees. That's probably an order-of-magnitude more than they need The state of their long open issue tickets suggest otherwise.
- Aeolun 2y agoSpeed goes down as org size increases. We just delivered a one page form with 10-20 people in a month, and it was an almost impossible achievement.
- merb 2y agoThe features they put out are not really that great anymore and most issues are about the core product and not the thing they want to sell you like, duo.
- frognumber 2y ago1975 called. They'd like to loan you their copy of the Mythical Man-Month. So to be clear: If all of those were SWEs, that would be 2,268 people to introduce bugs, and roughly 2.5M potential social links / interactions (and communications overhead). The issue queue is what results. Most projects are best done by about 2-10 person teams. That's about where you can maintain architectural coherence. Beyond 20, architectural coherence becomes impossible.
- 999900000999 2y agoSo would the perfect GitHub/GitLab competitor be a 20 person team of highly paid engineers ( 400K USD straight cash comp) with outsourced marketing and HR ? I actually think most companies, particularly when VCs are pumping them full of capital, overhire. I guess this is to signal to the market we're doing cool things...
- frognumber 2y agoFrom a purely "winning in the market" perspective, I think there-abouts. For optimal, I might go up a little bit more, since there are multiple products, but not a lot more. Some of the CI/CD stuff is pretty disconnected from the core product. There are very, very strong individual pressures to overhire. "I managed a 500-person team" sounds a lot better on a resume or otherwise than "I managed a 5-person team" (even if the 5-person team did more). I also wouldn't go all cash. I'd do the normal $150-$200k cash, and the rest in equity. I'd be very, very generous with equity. There are also time pressures, whereas many things take time to build. 5 people x 4 years >> 20 people x 1 year, at least if kept productive (which is sometimes hard with longer timelines)
- 999900000999 2y agoFor a startup I'd prefer my cash up front to be honest. I'm now thinking if elite companies ( no juniors , pay starts at 300k to 400k, no fluff) would generally out compete bigger organizations.
- nikau 2y ago
- 999900000999 2y agoMore employees make number go up. Back when interest rates were near zero complained hired more people than they needed. The money was really good too, I was making more money 4 years ago.
- pxc 2y ago> But all else being equal, I'll pick open-source over proprietary. That is a competitive advantage over github. GitLab is proprietary with some open-source components that comprise a limited 'open core'. It's not open-source.