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This is the same business model that Computer Associates used successfully in the 1990s, so it's not new to IT or technology. The primary difference now is tha
by rswail 9mo ago
This is the same business model that Computer Associates used successfully in the 1990s, so it's not new to IT or technology.
The primary difference now is that the transition from bespoke IT on premises environments has been subsumed by the cloud hyperscalars and an entire hierarchy of products that use that infrastructure in a higher level of composability than in the past.
Products like SAP will continue to require engineering to maintain compatibility with the changes in its customers' requirements.
Products like MS-Word don't need that same level of feature work.
If a product is essentially feature complete then making the engineering a "maintenance only" support is about minimizing those support costs.
- FormerBandmate 9mo agoThe thing about this business model is that it inevitably falls apart when things break. Bending Spoons doesn’t care (yet), but they’re not at the point where stuff has proven unsustainable
- rswail 9mo agoSure, but that's not a problem for the short term, and these guys can beef up support to keep it going if needed, just not invest in new features or chasing competitors. Just like an old building, their business model is to sweat the asset until it's no longer viable. In the meantime, the cashflow goes directly to the bottom line.