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Something I’ve been toying with: the software company equivalent of capital efficiency isn’t tech efficiencies but go-to-market efficiencies. In other words: the cost edge comes from relatively cheaper acquisition not relatively cheaper servers.

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Dan Luu

@danluu

Aug 2

I don't agree with the reasoning that Kubernetes will be forgotten because it reduces productivity. If you look at the most successful post-Twitter tech companies, backend effectiveness and efficiency is just not a serious driver of success. It seems to barely matter at all.

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Cedric Chin

@ejames_c

Aug 3

I don’t 100% believe this, to be clear. Empowering a small engineering team to shave off cloud costs seems perfectly reasonable in some situations. But maybe not the highest order bit.

Cedric Chin

@ejames_c

(Of course, minutes after I tweet this, my brain generates multiple counter-examples. Fraud at 2000s-era PayPal, server spend at some infra startups today — e.g. every new free-tier user spins up a large instance. So obvious exceptions exist).

2:52 AM · Aug 3, 2022Twitter Web App

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It’s all about relative margins - Eg payments is tiny margins but adtech/search aren’t, infra - it depends

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Yeah this seems like a much better framing.