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You are absolutely factually correct in your analysis, but you are completely missing how business works. Fundamentally, there is value to most businesses in being able to just buy a decent solution to a non core competency. That’s where Algolia and AWS and basically all service companies come in... a medium scale clothing manufacturer with a booming e-commerce site may well know they have no clue how to do search, and no clue how to assess and hire individuals who could implement it, and no clue how to find and hire a cio who could put together a team from scratch who could do this on a reasonable timeline. |
I have one client in particular that is a stark indicator of this trend - 50+ year old company and their second floor where they used to have 30+ developers and sysadmins and a server room downstairs has now been remodelled into a break room and new offices for their new team of 5 (all awesome replacing a ton of mediocre people who didn't get much done for a decade)
They're doing better, their products are more popular, they don't have to worry about recruiting developers + sysadmins, their current IT staff get paid better and they're saving money.
I find Algolia interesting in that they've managed to capture something that Elasitc didn't - and it could be because of a prevailing wisdom similar to that of grandfather's comment