The cloud is benefiting IT, but not business - “The central promise of cloud computing was to usher in a new era of agility, cost savings, and innovation for businesses. However, according to the McKinsey survey, only one-third of European companies actively monitor non-IT outcomes after migrating to the cloud, which suggests a less optimistic picture. Moreover, 71% of companies measured the impact of cloud adoption solely through the prism of IT operational improvements rather than core business benefits.” And: “Only 32% report new revenue generation despite having invested hundreds of millions of dollars in cloud computing.” N=“50 European cloud leaders.” // So, backward-looking FUD, sure
Tech Time Capsule: Early 1990s Clip Art Captured an Era - Good stuff.
AI isn’t useless. But is it worth it? - “they do a poor job of much of what people try to do with them, they can’t do the things their creators claim they one day might, and many of the things they are well suited to do may not be altogether that beneficial.” // I’ve lost the links to the Tweets-n-shit on this sentiment, but I’m more less like this: most of the time I try house AI to create, it would have just been faster and easier to do it myself. AI is great of search and for learning (I spent an hour figuring out NPV and discount rateing as applied to non-economic thinking everyday life - ChatGPT was great at this!). AI is not good at creating…if you’re already an expert.
Lessons after a half-billion GPT tokens - In nerd-space, the deflation of AI expectations has begun, finally, after a year or so of usage. This is good! We can finally just get to realistic work. Let’s get those insights on accounts receivable.
Most developers have adopted devops, survey says - I’ll have to look at this more, but: “29% of developers used continuous integration to automatically build and test.” This means that 71% of respondents are not automating their builds and tests. // “Grady Booch first proposed the term CI in his 1991 method, although he did not advocate integrating several times a day. Extreme programming (XP) adopted the concept of CI [circa 1989] and did advocate integrating more than once per day – perhaps as many as tens of times per day.” // 35+ years later, here we are at 71%. WTF? Something is weird here, or just 🤦.
Do software companies actually have good margins? - ’In other words, software development costs are COGS. Not literally; not according to the accountants. But in practice, if you can only sell SaaS software—and retain customers—by promising a steady stream of new releases, how are the expenses associated with developing those releases functionally any different than the money you spend on servers and support agents?’
Amazon Isn’t Killing Just Walk Out But Rather “Pushing Hard” On It - Hmm, hopefully we’ll see some nuanced corrections in all them news outlets…
Notes on how to use LLMs in your product. - “Even the most expensive LLMs are not that expensive for B2B usage. Even the cheapest LLM is not that cheap for Consumer usage – because pricing is driven by usage volume, this is a technology that’s very easy to justify for B2B businesses with smaller, paying usage. Conversely, it’s very challenging to figure out how you’re going to pay for significant LLM usage in a Consumer business without the risk of significantly shrinking your margin”
The Art of Product Management in the Fog of AI - “before products launch, it’s critical to run the machine learning systems through a battery of tests to understand in the most likely use cases, how the LLM will respond."
‘This shit’s so expensive’: a note on generative models and software margins - “The fundamental problem with generative models is that they are 10x too expensive to work with the industry’s default business models and structure. Either these companies who are going all-in on ‘AI”‘need to fundamentally change everything about how they work – laying off a bunch of people won’t make ML compute 10x cheaper so they’d need to change the org to survive on razor-thin margins – or they need to discover some undefined magical way of lowering compute costs 10x. So far they’re opting for magic."