magic starSummarize by Aili

The End of Software

๐ŸŒˆ Abstract

The article discusses how software development will change in the future, drawing parallels to how the internet has disrupted the media industry.

๐Ÿ™‹ Q&A

[01] Before the Internet

1. How did media behave before the internet?

  • Media was expensive to create, as it required paying people to make, edit, and distribute content.
  • Since content was expensive to create, it had to make money, and consumers paid for it through newspapers, magazines, books, cable, and pay-per-view.

2. How did the internet impact media companies?

  • Media companies viewed the internet as a way to reach broader audiences and reduce distribution costs.
  • However, the internet not only reduced distribution costs to zero, but also drove the cost of creating content to zero, leading to a proliferation of user-generated content.
  • When content no longer had to make money, it led to a "Cambrian explosion" of content, with a deluge of content that consumers could not reasonably consume.

[02] Software Development

1. How is software development similar to the media industry before the internet?

  • Software is expensive to create, as developers are expensive. Software has to make money, and consumers pay for it through software licenses, SaaS, and per-seat pricing.
  • Software margins have historically been high, with 90+% margins and zero marginal cost of distribution.

2. How will LLMs (Large Language Models) impact software development?

  • LLMs have proven to be remarkably efficient at translating human language into computer language and vice versa, which will drive the cost of creating software to zero.
  • Just as user-generated content platforms disrupted media companies, software companies will be replaced by a new set of platforms that control distribution, similar to how Vogue was replaced by influencers and Salesforce may be replaced by a constellation of dynamic solutions.

3. What will happen when software no longer has to make money?

  • We will experience a Cambrian explosion of software, similar to the explosion of user-generated content.
  • Majoring in computer science today will be like majoring in journalism in the late 1990s, as the invisible hand of the market will correct the software industry.
Shared by Daniel Chen ยท
ยฉ 2024 NewMotor Inc.