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by ineedasername 1772 days ago
The default "business plan" of any so-called "tech" company

Leaving aside this example, sometimes a middleman is useful, aggregating what is otherwise disaggregated into a single location.

But if its primary function is to act as a portal into some other single system, then the problem is that other system. It also means that your business model is predicated on not fixing that system-- sort of like how H&R block and TurboTax lobby against simpler tax returns because they act as a portal to a complex system, and if that system is simplified then they are no longer necessary.

Govly may end up being useful, but I expect that if it really catches on then in a decade they would find themselves arguing against meaningful procurement reform designed to streamline the process. Maybe I'm too cynical though.

2 comments

Not cynical. We agree and to a great extent it would be nice to participate in the reform, though knowing how the gov works, it'll be a few generations from now. It would be nice to aid or even 'be' a platform that the government uses instead of industry using it to make sense of the government 'mess'.
> it'll be a few generations from now.

Some challenging but interesting features accompany this property, you have a multi-decade project that can not require less than excessively complete employee turnover simply due to retirement alone, but it's possible to pull ahead technically and stay that way. OTOH, it will never be possible to deploy everything you have to offer. You must be capable of effectively mothballing some technology for future deployment.

You need to allow for this since you are doing some of the most undesirable work that others have run away from for exactly reasons like this. So there is so much left to do.

It's almost like an element of bureaucratic martyrdom can not be avoided.

Governments sure are high-rollers though and continue to throw money around like they didn't work very hard to earn it, of course it's always been spoken for over generations too. Well spoken for at least in the opinion of the spokespersons.

So I wish you good fortune and may you speak loudly but carefully, be well heard, and bring in voices which were too faint to get a share the old way.

If you're successful, the ideal scenario might be that the government acquires you to use your system instead. They couldn't just hire you since the end result would be the end of your business, at least as it pertains to the federal government.

There are other cumbersome procurement "markets" at the state and local level, but each of those would probably be essentially a new product, each designed to the idiosyncracies of each jurisdiction. However, that also could be an opportunity to be an aggregating middleman rather than a 1-to-1 middleman with like with the Feds. Any regional or national company too small to have clout & an insider track would probably kill for the ability to use a single portal as a one-stop-shop for dealing with state, county, and city municipalities.

That's where your value as a true positive middleman is hidden. Because even if they all fixed their cumbersome opaque systems (which is unlikely) there is still enormous value in aggregating them all in one place for contractors.

I know, it might look like your current plan is a "platform" but it's really kind of just middleware. Aggregation makes you a platform.

That also keeps you from trying to compete directly with something like Workday Finance/Procurement and their portals for suppliers and contract fulfillment: this has helped a decent amount in streamlining procurement even in places trying to map unnecessarily cumbersome practices derived from legacy systems onto it. If you're merely aggregating, you don't have to compete with that.

As a caveat to all of this, while I'm a well informed outsider, I'm still an outside observer of the tech startup scene and might be speculating above my pay grade here.

Agreed on all accounts. Slowly but surely we'll start gather the State / Local / Education level opportunities in our long road to be the unifying platform. In the end we do want a more efficient government and if that is selling the platform to them, great, we are in - I definitely don't want to become a government employee...
Best of luck! With a roadmap that builds out your offerings beyond just the Feds if you're successful there, I'll wish you well. And give a final note that, with some limited experience on state-level procurement, I can say that states may be an easier nut to crack in terms of the small companies having a chance without special relationships, IF they can navigate the process. If you find a state balanced nicely between opaque processes and high annual procurement budgets, that could be a good test case: Solid value-add and enough RFPs (or purchases below the RFP threshold) to have sufficient volume. Top 5 states by budget, choose the one with the hardest procurement hurdles.

Also I'll send you an invoice for the consulting and analysis I performed in these comments. I'll call it even at $100k, or a single meaningless internet point. I'd prefer the internet point, but if you feel the need to send cash then I guess that's okay too. But not both! That would be over paying. The internet point can take any form you'd like, but I prefer to receive it in D&D-style "+1" units.

You're not cynical.

The problem isn't middlemen per se - often, they're very useful. For example, almost every service provider you use in your private life, like a barber shop or an accounting company, is by definition a middleman - they stand between you and the person actually performing the service. It's clear such intermediary tends to benefit both the service giver and the service receiver.

The problem starts when the middleman tries to lock you in. All kind of pathological, abusive behavior grows from there. In the relatively rare case of being a portal to a single system, they'll try to prevent you from going behind them and interacting with the system directly (TurboTax is a master example of that). In a more common case with tech companies, which is "aggregating what is otherwise disaggregated into a single location" (aka. bundling), they'll frequently attempt to decommodify the resource they're bundling. E.g. media streaming platforms making exclusive deals for content, or chat/collaboration and social media platforms working hard to prevent interoperability between services.

It's not cynical to be on the guard, because lock-in is the default business plan of many tech companies, including most of the well-known ones.