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Re: The software factory (was "Don't believe the hype?")
Subject:Re: The software factory (was "Don't believe the hype?") From:Chris Despopoulos <cud -at- telecable -dot- es> To:"TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com> Date:Thu, 11 Mar 2004 09:29:37 -0800
Sorry, but I'm not going to quote everything.... Tupperware vs thrown
pottery, MS being brave enough to make a commodity out of software, the
dominance of the industrial model...
TUPPERWARE:
There is still room in the market for artistic and atrisanial
tableware. Vertical software may be analogous. I'll note that if you
look in any computer magazine these days, you won't see much innovation
in software. It's all yet another GHz in the chip, hand-held devices,
or games. I think that says more about software-as-commodity than
anything else. The technology is maturing, and as with all things
evolutionary, the initial explosion has given way to a sifting out of
the most general solutions. The unique solutions tend to die off. But
I think vertical software will continue for some time to come. That's
where the current innovations is, as far as I can see. And XML + real
B2B is waiting in the wings. Oh, and you wouldn't catch me using
Tupperware. I hate the stuff. It's not biodegradable.
REDMOND:
Need I repeat that Windows is *not* the best operating system? It won,
but not on the merits of its quality, capacity, support, robustness,
ease-of-use, innovation... It is indeed a weed.
INDUSTRIAL MODEL:
We're kidding ourselves if we ever think (or thought) we're not
conforming to an industrial model. There are significant differences
between this one and earlier ones, but the model is industrial
nonetheless. A significant difference is the material that must be
moved to support the industry. For the industrial revolution we needed
trains to move coal and raw materials. For this industry, the
*material* to move around was people. The industry capitalized
enormously on that in two ways... First, it put the responsibility to
move the people onto the people themselves - gotta have a car. Second,
it offset the infrastructure onto the local gvmts - roads. Remember the
traffic jams in Silly Valley just a few years ago? I'd wager that
factor alone contributed most significantly to the high earnings
expections put on software.
The emerging change is centered on the fact that you don't even need to
move people. I'm surprised it took this long to occur to management
that you can get the work done anywhere. If they had latched onto the
idea sooner, there would be more Americans doing the work from home (for
less), and fewer jobs would be going offshore. Again, it's not the best
that always wins - there are too many other factors. Timing is a big
one in this case. It remains to be seen how the industry shakes out.
I'm not convinced that it's a good model to simply hand your development
over to a turn-key office somewhere else. In the long run, you may as
well hand your company over - what's to stop them from taking over sales
and marketing? The sales and marketing backgrounds of most CEOs, and
the desire to protect that sector of the industry? What's to stop
companies from offshoring everything except the liquid capital, if not
the protectionist instincts that will ultimately kick in when people
high enough on the ladder see their positions going away?
So why not protect jobs now? I'm not sure... I think it's a good thing
to even out the playing field, but I don't think it's good to exclude
Americans who would work from home - just because they don't belong to a
turn-key shop in another country. All things considered, I bet the
cost/benefit could be rather similar. But management doesn't think that
way. They chase fashion and public opinion just as much as Tom Cruise
or Martha Stewart do. Yet again - the best does not always win.
(Otherwise, we'd be driving steam-powered cars, and Tom Cruise would
never have worked for Kubric.)
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