[jasode]

I'm not convinced by this blog post that "software" is the new oil.

To me, it's the top talent of "software PROGRAMMERS" that's the "oil".

Let's pretend that Google Inc opensourced their entire software stack. Now, anyone can just spend money on hardware and datacenters and "replicate" what Google does in a certain sense. But did you really duplicate their abilities? Would intelligent and visionary investors fund such copycat endeavors?

I say no because smart people would realize you didn't replicate Google Inc's "hiring pipeline" of the best minds from Stanford/MIT/etc. Yes, we may have gotten a snapshot of Google's source code but we didn't duplicate their ability to attract desirable workers who can build <<the next future thing that's NOT in that source code dump>>.

Even Bill Gates had noticed this point: Google's ability to poach top talent from Microsoft was better than Microsoft's ability to attract Google defectors.

Same analysis can be done for Amazon inc. A person could take all their source code for ecommerce and warehouse logistics and I'm not confident he could outcompete Jeff Bezos. First, you must prove that you're hiring a better pool of candidates than Amazon.

Lastly, the "software" advantage leaks outside of the organization because others copy it (open source) or ex-employees with knowledge leave and reimplement it (legally) at their next gig. On the other hand, it's not as simple to make top compsci graduates switch their career aspirations from Google/Facebook/Apple in SV to SmallPotatoesInc in Alabama.

[silverbax88]

This is more accurate. Taking the Amazon example, there is literally zero financial reason that Wal-Mart could not compete with Amazon. None. Yet,so far, they have not even come close. The reality is execution, not deep pockets.

And that execution comes from the talent powering the company, at least in the right positions.

[ArkyBeagle]

WalMart has a pretty significant investment in technology. It's not the same technology Amazon uses. It's more classic logistics, POS and backroom stuff. I've seen their job ads. They execute. WalMart grew primarily through technology - to be sure your Dad's technology, but Mr. Sam had a comprehensive printout for the day on his desk every day.

WalMart is significantly bigger than Amazon. WM - 485.65B v Amazon @ 88.99B. Call it 6x.

I shop at WalMart, and I will quite frequently take their "in store pickup" option. I also have amazon Prime and the goods I pick for those are different, it seems.

[silverbax88]

They execute in a different space than Amazon. What I wrote was 'competing with Amazon', which they are absolutely not.

I'm talking strictly in the 'online retail' space, which I believe was pretty clear.

[ArkyBeagle]

But you can actually buy stuff on walmart.com . I think they do compete in that. And the sheer number of stores for in-store pickup is a pretty good option.

[toptalentscout]

>> To me, it's the top talent of "software PROGRAMMERS" that's the "oil".

So does that make all the rest of us plain programmers the grease?

[doyoulikeworms]

I think all programmers are the "oil". Some are higher quality that others, just as is the case with oil. Maybe tech companies are like refineries?

This analogy is getting strange, but I like it.

[it_learnses]

Yes and right now the industry is trying to create more and more programmers by pushing schools, promising riches, etc. just like the oil industry has been experimenting with various ways of extracting as much oil as possible. Wondering what the side effects equivalent to environmental pollution are in this case...

[GeneralMayhem]

>Wondering what the side effects equivalent to environmental pollution are in this case...

Just like pollution from the fossil-fuel industry, you can pick high-intensity problems that are restricted to the areas nearest the source, or low-intensity problems spread over the whole country/world. For example, the housing pressure in SF/SV is very high intensity but affects only a small part of the world; non-STEM high school and university departments losing prestige and/or funding is less intense in any one place but more widely distributed.

[pcurve]

I like this assessment much better. Software programmers are finite in number.

Maybe ordinary software programmers are like crude oil because there is finite number of them, but still abundant. And fairly fungible.

Talented ones are like highly enriched uranium in that they're much more rare than crude oil by volume.

But they're still fungible because they can jump ship and decide to burn themselves at a different company.

[pjc50]

And stack ranking is "refining" the programmers by heating them under pressure then skimming the top?

decide to burn themselves [out] at a different company

Truth in humour, dude.