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_bxg1 · 6 years ago
I remember reading this article about SAP a few months ago, and it just blew my mind: https://retool.com/blog/erp-for-engineers/

Here was an entire market segment I'd never heard of, and just the market leader is worth $163B. And on top of that, the technology is so totally alien to anything I'd ever heard of before. It's like an alternate-history kind of thing. Like if we discovered a continent somewhere in the Pacific that had never been in contact with our civilization and had steam-powered airships or some crap.

And I'm sure this is just one of many such industries, even just within the umbrella of software.

NikolaNovak · 6 years ago
That is fascinating to me, because virtually all my friends have heard of SAP outside of IT - as users or recipients. My engineer friend uses it for supply chain management, a beer store hq clerk helped implement it, construction accountant has used it, etc.

At the same time, I guess you have to be at a company of a certain size for it to be relevant to your life... But that perhaps proves the point - HN is very starup focused, and occasionally in a bit of a bubble (which is fine - I come here to get away from my daily mainstream IT grind and see excited people talk about cool things:), yet a hundred reasonably successful startups won't employ or touch near as many people as a single "quietly" successful traditional behemoth.

NikolaNovak · 6 years ago
And if it helps understand the ecosystem and its seeking oddness, this is the crucial part of article:

"Implementing ERP isn’t just a purchasing decision: it’s committing to redoing how you handle operations. Installing the software is the easy part; adjusting the whole company’s workflow is the most of the work."

Don't think of erp and implementing it as a software development challenge. Sure, Developers can fscrew up*, an erp implementation but they cannot make it succeed - it is fundamentally a business transformation endeavour and must be undertaken as such to have a chance.

ehnto · 6 years ago
A lot of HN topics are about tooling for startups. Those tools are sometimes startups themselves, which can can make HN feel like a bit of a bubble I think.

Software for software developers can be a huge focus here, but it's just scratching the surface of software for the rest of the world. I was startled when I applied for a job at a company in my city, and they told me their product was entirely API connectors for the local banks. In fact all of the companies I've worked for here have been making software for local industries! From solar installers, energy efficient lighting manufacturers, local commerce and POS systems, mechanics software, creative market places, local lead generation.

I think if you want to start a business from scratch and you're not in SV, it's worth targeting those problems instead of problems that SV/startups have. You might not get sexy VC capital, but you might be able to jumpstart with some clients up front.

piokoch · 6 years ago
"My engineer friend uses it for supply chain management, a beer store hq clerk helped implement it, construction accountant has used it, etc."

Is SAP something that can be somehow scaled down? if this is used for a beer store, it has to be really large store, if that's what is written in the cited article is true:

"A basic installation of SAP has 20,000 database tables, 3,000 of which are configuration tables. In those tables, there are ~8,000 configuration decisions you need before even getting started. And that’s why SAP Configuration Specialist is an actual job title!"

brundolf · 6 years ago
To add some context (for your curiosity), I'm not in The Valley and I'd never worked at a true "startup" until very recently, but I have only ever worked at small (<100 people) companies. Except, that is, for the summer I interned at Hewlett-Packard. Not sure how it never came up there; maybe they just have their own equivalent system.

I had actually heard the name SAP come up in passing at my last company, who had lots of ginormous clients. But all I'd really gathered before reading the article was "it's some kind of database, or something".

Jestar342 · 6 years ago
I worked for EDS from late 90s to early 00s and SAP was _everywhere_. Projects were scoped and framed as "how can we fit this into SAP?" - and not "how can SAP help this project?"

SAP is/was virulent in nature. If you used it for one thing it damn near forced you to use it for everything. A significant chunk of the work EDS were undertaking (as IT outsource) was migrating to SAP.

Our timesheets, project plans, data, hell even a huge chunk of our app development was done in SAP. We were paying through the nose for SAP contractors too.

ivalm · 6 years ago
> At the same time, I guess you have to be at a company of a certain size for it to be relevant to your life... But that perhaps proves the point - HN is very starup focused

That’s pretty dismissive. I work at a company with ~80B in revenue, I never interacted or heard of SAP in work context. In fact it is only incidentally that I’ve heard of them previously. There are hundred of thousands of engineers working in companies with 10-11 digit capitalizations that will never interact or hear about SAP.

Edit: to clarify because I am getting a bunch of downvotes. My point is not about SAP’s penetration, it is that lots of engineers (even in companies that use SAP) might not encounter SAP products. The perspective “of you haven’t worked with SAP you are in a small org” is wrong.

jjeaff · 6 years ago
I have heard of sap in tons of contexts in undergrad business classes, news articles, and things like that. Though I have never come across an implementation in the wild. Though my experience in large enterprise is limited.
deng · 6 years ago
I'm in Germany and of course everyone here has at least heard of SAP and knows it's huge, but I guess not many people know just how huge. SAP consultancy is a big market here with lots and lots of job openings. I knew a few people who did that, it's usually a very well paid job, but it's well paid because otherwise no one in his right mind would do it. From what I heard, it's incredibly boring while at the same time incredibly stressful when you're on-site. Also, I've never met anyone who actually liked SAP.
badpun · 6 years ago
I've heard very similar things about being a SAP consultant here in Europe - basically, it sounds like a job for someone who:

- understands technology, but is not a big fan of it

- can communicate with clients

- can handle stress well

- is into salary maximization

cosmodisk · 6 years ago
SAP consulting is like some sort of mythical club,where only the chosen ones can join. SAP isn't something one can learn from his bedroom and then go around advising multinationals.You have to somehow get trained on a job where it is used. So the vast majority of SAP consultants pretty much owe to the fact that they lucked into it.It is however, pretty lucrative though.
jimnotgym · 6 years ago
I liked SAP, especially compared to what I have used since. We have never met, so your point is still true! It might be some time before Germany lets us English types in again!
cambalache · 6 years ago
Want your mind to be blown even more? I worked for a multinational company, I would not be surpised that this company is among the top 10 SAP customers worldwide. Well, everybody hated hated hated SAP, it was a huge hindrance instead of any help.Any use beyond of a "dumb" database was a huge PITA, and I am not fully convinced that all in all it helped more than damaged the business. It was clunky, unintutive, slow, ugly, archaic and a long etc. There were these guys, that were trained as "experts" but they frankly behave more like witch doctors. SAP is coasting just by its name and legacy but from my POV is ripe for the taking. It is not easy though, ERP systems are hard, and changing them ever harder, but in my fantasy world I would like to develop some program and would be very happy to skim 0.00001% of their income.
lenkite · 6 years ago
SAP's ugly green, old style-UI screens are wonderfully optimised for data-entry. You can be ultra-fast. It's like VIM. It's like driving at 300 mph.

Its all the new fangled dumbed-down, web-ui's that is sheer crap and leaves your head scratching.

Well..the old UI's were coded by old-school, C programmers who started their career in the 70s and 80s. They even wrote a multi-process Erlang style kernel to back the application programming. Performance came naturally from their gut.

Nowadays, we get Electron and congratulate ourselves.

jimnotgym · 6 years ago
I worked at an $8bn multinational and we ran the whole operation through SAP from quote to cash... and we really liked it. It was consistent, and the 'ugly' green-screen style data entry is wonderfully efficient. I hear this all the time though, about all ERPs. It is all about how you use them.
neilwilson · 6 years ago
Same with accounts generation.

Almost certainly most operations accounts and tax filings could be fully auto generated from their bookkeeping - if the bookkeeping was good enough.

You could do that by constraining the bookkeeping and adding some intelligence to the reporting.

So why do bookkeeping firms like Xero stop at basic bookkeeping? Because they sell via accountants - who make a lot of money piping data from one computer system into another to change the format a bit.

Enabling certain people to maintain their mystique is lower hanging fruit than pushing for full automation.

Plus who wants to program accounts systems...

TheOtherHobbes · 6 years ago
Harder than it sounds. A complete drop-in replacement requires an almost unbelievable amount of internationalisation and research. And even if you can get all of that lined up, B2B sales and marketing - and inertia - are a huge challenge.

It's not that it couldn't be done, but it's very much a moon shot and it's not going to happen without someone charismatic and experienced driving it and selling it.

Specific niche feature SAP-a-likes are more plausible on a smaller scale, but sales and marketing will always be the real challenge.

devin · 6 years ago
Good luck! You're time to market and the sunk cost fallacy are overwhelmingly against you.
fulafel · 6 years ago
There are smaller ERPs too, but I think often the real alternative is building something in-house tailored to your specific business.
kyllo · 6 years ago
That's basically what Salesforce did, but they ended up skimming a lot higher % than that
hoseja · 6 years ago
I've never seen an et cetera qualified :D
mbesto · 6 years ago
> but in my fantasy world I would like to develop some program and would be very happy to skim 0.00001% of their income.

Which is exactly what SFDC, NetSuite, etc have done. There's definitely room here.

fphhotchips · 6 years ago
Workday is in the process of doing this. I wish them all the best, but I can't help thinking that we're just replacing the old goat with a new goat.
abiogenesis · 6 years ago
I did that and was successful to some degree, but it's not easy. I would've done something else if I knew that back then.
fovc · 6 years ago
Coming from the opposite direction (mgmt consulting for big corps -> startup), I was very familiar with the ERP concept, but am still super confused by the ERP market. Every so often I look for an ERP for our company, but am always disappointed by the options. It seems there's an uncanny valley between Quickbooks and SAP, but maybe the issue is just one of discoverability.

We've slowly stitched together an assortment of SaaS tools, custom built modules, and Excel files in the exact way I swore we would never do. If anyone's been through this hell before, I would appreciate some help.

downvoteme1 · 6 years ago
I have been doing ERP consulting for about a decade now and I tend to disagree. I think we have a lot ph ERP options now in the paid space apart from just Quickbooks and SAP. You need to pick and choose based upon what is the most complex operation for a company- be it multi currency financials, complex supply chain or some other parameter. Then you can pick from lowest complexity to highest in the following manner

* Quick books

* Sage

* Dynamics / NetSuite

* JD Edwards / Infor / Manhattan

* Workday

* Oracle EBS / SAP

Each of those on the same line are similar in features and complexity.

This is obviously not a complete list - just the ones I have dealt with.

tomnipotent · 6 years ago
Quickbooks will do you fine up to $100M in revenue or 8-10+ years in operation. When you cross either of those bridges, you should think about implementing a "real" ERP.

But this doesn't happen until your team (accounting/finance/CEO/CFO) start running into roadblocks in either piecing together financial statements, or the month close process starts taking weeks of manual labor, or there's a HUGE accounting issue and everyone discovers the forecast is way off and the company has been burning cash faster than expected.

At this point you have the organizational momentum to do the crazy amount of work required in getting an ERP up and running, which requires getting most of your business flowing into it so that it'll even be remotely useful (otherwise everyone goes back to Excel).

What needs to flow into it? Everything you're doing by hand to update your three sheets. You need to get revenue/income in there (sales orders, purchase orders etc.), product costs if you have them, payroll, bills (internet, office supplies). Hopefully you use something like Bill.com, and this becomes a (slightly) simpler process.

Maybe you have vendors in Europe where you pay in Euro, so you now also have to figure out how you're going to convert currencies. Maybe you have warranty on your products, so you have to balance accrual accounts. This list goes on, and on, and on.

Every company is different, and you might not even recognize the overlap between two ERP launches besides the fact that they're using SAP.

LilBytes · 6 years ago
Yeah I thought the same, I've worked with, against and for SAP since I turned 21. My whole career has spent working on ERP on various platforms.

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ck_one · 6 years ago
SAP is a German company so here everybody knows about it. There is even a startup strategy called "unbundling SAP" where you pick one feature of SAP, do it 10x better and target a smaller but still huge market. Examples for such companies are: Personio (500M valuation), Cellonis (2.5B valuation)
yellowapple · 6 years ago
Sounds similar to the "unbundling Zapier" article that made its rounds here on HN a couple days ago. Definitely seems viable.
m463 · 6 years ago
A friend of mine worked for Sun in the late 90's and mentioned SAP to me.

He told me companies would buy top-of-the-line (overpriced) hardware and pay a premium to get SAP up and running, because they would plug their company into it and recoup their costs almost overnight. It would just do say currency conversions or other super-boring non-core-business things better and save a pile of cash.

You can't save yourself rich, but sometimes the difference between a profitable quarter and a horrendous loss might be your accounting software or your tax software...

BiteCode_dev · 6 years ago
Oh yes, there are tons of giants creating software for health applications you never heard of, defense purposes you cannot hear about, logistic you would never consider (managing competitions, port services, private jet traffic, truck fleets...) and so on.

And those don't use $LATEST_TECH, $FANCY_FRAMEWORK or $EXOTIC_LANGUAGE.

They use $BORING_TECH, $OLD_LANGUAGE, $DEPRECATED_FRAMEWORK.

They are not in the cloud, don't update often, have to deal with legacy stacks, stacked on a stack of legacy stacks, and administrative burden from left to right.

Those are the ones that pay for an Oracle licence, and sync it to dozens of excel sheets from an FTP and a lone Access DB, where all auth is manage by a Tomcat service actually proxying to Active Directory and their custom CRM.

And they certainly don't have a team of 10x programmers. In fact, most are windows dev that never used the terminals and don't have admin rights on their machine.

I should know, I make half of my income going from company to company to train their team.

They are everywhere.

They make billions.

andrewstuart · 6 years ago
SAP is amongst the least fun software category which is ERP systems.

Highly customised, to the point that upgrades are impossible.

Extremely complex systems. So complex that vendor lock in is assured, and the lock in means big prices.

And yet a good business because ERP systems are at the core of any medium to big business.

It's grindy, boring, challenging without being fun work, often using non standard technologies that have been developed by the ERP systems vendor, which help ensure lock in.

ERP companies like SAP and Oracle are the absolute best at making money on services - they know how to charge huge huge amounts and get away with it. There's TONS of money there.

I wouldn't want to work in that area though.

KMag · 6 years ago
My sister-in-law graduated with a degree in Industrial Engineering, and got exposed-to/proficient-in SAP at one of her first jobs. Now, she does SAP consulting work, much of it from home (even before COVID-19), at a significant pay bump and highly flexible hours.
rb808 · 6 years ago
The crazy thing is for most of the world people use Windows and SAP and firewalled intranets and no external email. Apple laptops and free access to the internet and SV culture is a tiny minority of what the world's computing looks like.
MandieD · 6 years ago
I’m nominally a DevOps engineer at a really big Germany-based auto parts (among other things) manufacturer, specializing in Azure and Kubernetes.

My real job many days is helping devs make peace with our various web proxies - even the special, relatively open, non-SSL-intercepting “dev proxy” requires CNTLM, which just celebrated its eighth anniversary on its current build. And of course, my little darlings take dependencies on it for things for which the masses absolutely not have access to it.

horsie-bacon · 6 years ago
as a designer working in enterprise side application development - so much this. So many design portfolios are geared towards consumer side apps but the world is powered by the most dry boring stuff.

[I finally got around to making an account after lurking for so long. Your post was the catalyst ]

chrischen · 6 years ago
I'd imagine the smart startup engineer folks will never know o this market because they're either working at some place like Google or doing their own thing, and one would need to have worked at a less sophisticated blue chip company to be exposed to these flawed systems.
eru · 6 years ago
Some people also worked in finance. That can pay well, but has plenty of SAP or similar crap to deal with.
jldugger · 6 years ago
When I was starting school, my dad had informed me that SAP was HUGE, and consultants with SAP skills were pulling in 200k, back when even google employees were still waiting to IPO.
ci5er · 6 years ago
I've got a - maybe silly - question: Do you think that software engineers read about the business of technology?

I mean, some of these behemoths (or used-to-be behemoths) of technology, like Oracle and Intel and Microsoft (Ok - everyone knows them) and Dell and Apple (mostly the 2nd one) and places like SAP (which is arguably the biggest database and logistics and supply chain (sans the EDI middle-ware vendors on the planet) and Synnix (which is arguably the largest ODM supplier of white label servers to the largest data centers in the world), and, well, Wistron? BBG? (Submarine - https://www.visualcapitalist.com/submarine-cables/) Satellites? Aerospace? What it takes to wire our world together?

This is not a criticism - it is simply curiousity - as a tech person - you don't read up on (or do you think people do or do not read up on?) the way the world works technologically?

My son graduated with an engineering degree recently and his friends always want me to take them to lunch (free food!), but also so I can tell them how the world is connected (power, telecom, SDN, Satellites (launch - cradle-to-grave), and I'm always a little amazed because I grew up libraries of books and they've got google, but want to be lectured?

I guess I don't understand. If you have a moment, could you edumacate me?

Red_Leaves_Flyy · 6 years ago
>I grew up libraries of books and they've got google, but want to be lectured?

Your son and his friends know you. Your experience is lived, and real, as real as you sitting next to them. Reading books is abstract, the language can be obscure, archaic, verbose, flowery, dense, etc. Your son and friends know how to read your emotions and communicate effectively with you. An hour of your stories could likely replace dozens to hundreds of hours of reading because you can tailor your stories on fly the in a way no author ever can.

solarkraft · 6 years ago
I do read about these things, but I can also spend my time with lots of other stimulating/important stuff. Priorities, maybe?
akjha · 6 years ago
This is something a lot of us lack. Do you know of any resources which can help in learning about the business side of the technology?
dvdhsu · 6 years ago
Hey! I'm David, the editor of the post you linked to. If there are any other topics you're interested in learning about, please let me know! We wrote another one on Salesforce (https://retool.com/blog/salesforce-for-engineers/) that was well received on HN too (https://news.ycombinator.com/item?id=20277115). We were thinking about writing about Marketo / marketing automation solutions next. (I'm david AT retool.com)

(As an aside — when we started Retool, we ourselves didn't expect the "custom internal tools" to be such a big market. As it turns out, we now have customers that spend $400M+ / year on building custom, homegrown, internal tools! While we [or any single vendor] certainly can't capture all of it, our goal is to capture some percent of it.)

vlucas · 6 years ago
I worked at NetSuite for a little over 4.5 years (2 years before the Oracle acquisition), and it also blew my mind how much companies were spending on NetSuite customizations. It's a huge world out there for sure.
joenot443 · 6 years ago
Great article David! Thanks for taking the time to include some screenshots and videos. This is the kind of company-funded-blog-content that we all love to see.
1cvmask · 6 years ago
Where is most of your adoption coming from? Which verticals? Which horizontal groups?
flarg · 6 years ago
Did you ever look at pega, nintex and Appian?
spottybanana · 6 years ago
You really have to be living in an alternate universe if you haven't heard about SAP. To me it feels like every other job involves some work with it.
mister_hn · 6 years ago
SAP was just nominated (together with Deutsche Telekom) the contractor for the official German Vivid tracking app (Covid-warn-App), just saying
allendoerfer · 6 years ago
I really don't get why they did not award an agency with a proven track record of delivering apps. If you choose one of the big ones, you still have high rates, but at least there is a chance of actually getting it done.

SAP is known for incredibly long ongoing projects and Deutsche Telekom has a track record of destroying acquired online businesses. I would bet 10:1, that this project will fail.

BoysenberryPi · 6 years ago
I work in B2B software and almost all of our clients use SAP. It's absolutely massive.
maxwin · 6 years ago
My company is using SAP so it is very familiar to me. But before I joined my company, I have never heard of SAP. There are some good industry process knowledge that gives them an advantage and the software is good once you get used to it. But it can definitely be 10X better (there is a big opportunity to make it easier to customize or integrate with other software) . However, once you become their customer, the switching cost is very high even though there is better software in the market. That makes it difficult for startup to break into this market.
clairity · 6 years ago
most people would be similarly surprised that $1T-market-cap microsoft is a business & enterprise software company, rather than a consumer one. it's ~80-90% of their $130B in yearly revenue (hard to get more precise because of the way they report their numbers).
_bxg1 · 6 years ago
That's not surprising to me personally, but I can see how it might be to the average person
HenryBemis · 6 years ago
> ..78% of the world’s food all flow through SAP?

Having worked in food industry as IT about 20y ago, we used to have fragmented system portfolio, and were struggling to pull data from one system to another. The around 2002 management decided to switch to SAP. I remember working on the storage/capacity/CPU aspect of it (and mid-migration I left the company and completely missed on the SAP train in my career). That food company was providing milk, yogurt, cheese, juice, ice-cream to about 25mil people (customer base). That's SAP for you right there. So that 78% doesn't surprise me at all. I believe the remaining 23% is too small to invest that amount of $$$ nad just hasn't done it yet.

When you get the ability to "track every cucumber" from pick to sell, cut down on fraud, errors, be able to calculate every bit of profit, loss, why would you go anywhere else? I understand the initial cost may be hefty, but once you set it up (good and well), you can stop focusing on that, and see how to grow the business parts of your business, and not the admin.

ntsplnkv2 · 6 years ago
See this sounds good, and is why many execs are sold on it.

But because it is so massive, it's impossible to find talent that can actually implement it properly. That's IF your company doesn't require a ridiculous amount of customization.

Projects always run over-budget and over-time. Vendor lock-in becomes a huge problem. These companies solely exist to keep customers using their software and paying their service fees. They then provide just enough marketing buzzwords to justify it to execs who justify it to other execs.

If SAP is done right, it is very powerful, but it is seldom done right.

TheArcane · 6 years ago
> Oracle and SAP are so dominant that even Microsoft uses SAP instead of their own ERP offering, Microsoft Dynamics.

This is insane. If it's hard for a company like Microsoft to move away from SAP and shift to their own solution (hence saving face in addition to the $$$), I can't imagine anyone switches software in the ERP world

jimnotgym · 6 years ago
Not so mad, MS Dynamics GP and Nav don't play in the same league as SAP/Oracle. AX is closer, but not there.
kradroy · 6 years ago
I work for SAP and it's surprising to me that not even other engineers in the Bay Area have heard of the company despite its campus in Palo Alto and their sponsorship of the "SAP Center" in San Jose. Do you file expenses? You probably use SAP Concur. Do you order office materials or equipment? You may use SAP Ariba. Have you taken part in interviewing a candidate coworker, or have you done yearly career goal planning? You may have used SuccessFactors for that. And this doesn't even count SAP proper's offerings (HANA/S4, etc).
ciceryadam · 6 years ago
Concur, Ariba and SuccessFactors are acquisitions, and only SuccessFactors is fully integrated under the SAP Umbrella. Here in Prague Concur and Ariba have their standalone subsidiary companies, with Separate HQs in different parts of town.
bryanrasmussen · 6 years ago
In my opinion the civilization in question does not have steam-powered airships unfortunately, but it does have some really overpriced crap.
hbarka · 6 years ago
Believe it or not, there was business software in the 90s. They were called *RP. ERP = Enterprise Resource Planning, MRP = Material Resource Planning, CRM = Customer Relationship Management. Home-grown code hacks to run a business cannot do what these companies can do, that’s why they’re expensive.
jogundas · 6 years ago
It seems that the market is big enough to allow unicorns making "plugins" like https://en.m.wikipedia.org/wiki/Robotic_process_automation to emerge.
twelve40 · 6 years ago
Thanks for sharing, very interesting to read.

> basic installation of SAP has 20,000 database tables, 3,000 of which are configuration tables. In those tables, there are ~8,000 configuration decisions you need before even getting started

Wow, this is nuts. 20,000 database tables?

ci5er · 6 years ago
They've been adding tables since 1980...
eru · 6 years ago
I did an internship at the SAP HQ in Germany more than a decade back.

The work was exceedingly boring. But they had excellent lunch. Better than most Google offices.

otabdeveloper4 · 6 years ago
You work in IT and you've never heard of SAP?

That's pretty wild, like not knowing who Microsoft or IBM are.

harsh3195 · 6 years ago
I haven’t read of such things in my country but am hopeful that this will happen soon here in India.
wdb · 6 years ago
TfL, BP, Shell etc run on SAP. Had good fun messing around with SAP over there
ciceryadam · 6 years ago
ExxonMobil runs on it as well.
jmilloy · 6 years ago
I clicked on the link not having heard of ERP or SAP and expecting to have my mind blown, too.

But, isn't that software almost the reason why computers and databases and programming happened? To help businesses with there boring business stuff, like inventory and orders and accounting?

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adius · 6 years ago
This is kind of how I felt when I started to learn Haskell
economicslol · 6 years ago
It's like Salesforce, that crap is ubiquitous in large companies. Have you ever used it? It's a nightmarishly clunky piece of trash and yet Salesforce is a 150B behemoth.
crimsonalucard · 6 years ago
Why would you use ERP instead of a regular SQL database?

edit Got a lot of vote downs. This was a genuine question from someone completely ignorant on what ERP is. Not trying to say that SQL is better, but I'm asking this because I'm ignorant of what ERP is and the description makes it appear as if it's a database.

What's the difference? would be better wording I guess.

cutler · 6 years ago
Try getting your average office worker to deal with an SQL database directly. No chance unless it only has a single table. A database without an interface tailored for a specific purpose is useless for office staff. I know this from experience having once tried to get office staff using pgAdmin to update the shiny new database I had designed for them.
_bxg1 · 6 years ago
Because it's your business logic. And your GUI builder. And your tax system. And your legal report generator. Etc.
thelibrarian · 6 years ago
Why would you use an ecommerce platform instead of a regular SQL database?
astine · 6 years ago
I don't know about SAP in particular, but ERP solutions frequently use SQL on the backend. I work with Microsoft Dynamics and it's just a SQL database with a special front-end for constructing workflows. I suspect Oracle ERP would be similar and have Oracle on the backend as well.
njharman · 6 years ago
Because the ERP solution comes with a gaggle of sales people, sales eng, and bizdev folks to convince your co's decision makers that it is best thing since butter.

SQL doesn't.

tlb · 6 years ago
The metal economy is huge. Almost every product requires metal. But metallurgists don't take home a big fraction of it.

What's special about the software economy is that people who write the software take home a large fraction of it. Maybe more than half, depending how you count. Which is unprecedented.

It's not just because software can be zero marginal cost. Musicians don't take home half of music revenue. In most creative industries, the creatives take home less than 1/10th.

Enjoy it while it lasts.

hnick · 6 years ago
Good software is a force multiplier than enables everything else to be more effective.

A traditional mindset applied to software results in the businesses we often see people complaining about. "We make the product but Sales gets all the money!" and that's very similar to your metallurgists. Code for hire as a product of labour. It takes an army of people to sell, to advertise, to make me want what it is you have (just like with music).

But a business who looks at software as complementary will see the value. A dollar spent brings many dollars back, just indirectly. It enhances the machinery that's already in place, and allows it to do entirely new things.

Dead Comment

sidlls · 6 years ago
" people who write the software take home a large fraction of it. Maybe more than half, "

Where do you get that figure? The vast majority of people writing software are not paid enough salary + benefits to come anywhere close to 50% of the revenue their work is responsible for earning.

mikekchar · 6 years ago
It's a good point. It varies widely depending on the industry, but even in the software industry a good rule of thumb is that IT costs about 10% of revenue (some places are as high as 30%, some as low as 2%). But that includes all the management (not executive management) and support staff. The spend for sales and marketing is much higher than development (though sometimes most of that goes out of the company, paying for sales channels, etc).
golergka · 6 years ago
In companies that actually manage to get to revenue, may be. But if you take together all the software companies, including many that have not yet and may never get to revenue at all, I think it would be much closer.
pif · 6 years ago
Musicians write music. Developers write and maintain software.

Imagine there's no Version, it's easy if you try...

Really, no concept of version: you buy a piece of software as it is, take it or leave it! Either it works enough for you or it doesn't. No bugfix in the next release because there is NO next release. The musician, ehm... developer, has switched to the new shiny thing. You modified yoour environment slightly and you need a tiny change on the software to adapt? Too bad it does not exist!

Really, the point I'm trying to make is that comparing software developers to musicians doesn't hold a lot of water. Both professions include creativity, but a song shipped is as immutable as a piece of hardware. Adaptabillity is what makes software as worth as it is!

jayjader · 6 years ago
One could argue the comparison still holds for developers of video games - as long as the game's code is not touched upon release. Used to be the norm, nowadays admittedly seems to be disappearing.
AnIdiotOnTheNet · 6 years ago
> Developers write and maintain software.

Which explains why they are so in love with evergreen software that constantly changes things largely for the sake of changing them I suppose.

davee5 · 6 years ago
Yes. The commodification of professional work is worth pointing out. I'm surprised by the percentage of people in this thread who think the SW industry is exceptional. It tells me a lot about the fictions people want to tell themselves in an industry that is still relatively novel.

By contrast I'm a HW builder (mechanical engineer / industrial designer / design manager). I make good comp but maybe 70% of what my similarly leveled colleagues in SW do. The vast majority of the arguments in here still apply to my work, with a little less focus on maintenance. And yet my job role's comp is in a slow decline. Why? Because it's fully commoditized.

Anecdote: I used to work for a HW focused VC leading their internal incubator/consultancy's physical design team. One of our ML focused investments got acquired for a ton of money and every other startup in the building wanted to know how well compensated the team was going to be. It's odd to see some people at the water cooler suddenly be worth millions when your startup is still grinding, it makes for stark contrast and a very real "what if" to the onlookers. One of the Sr MEs at a struggling startup was clearly jealous and lamented to me, "man, screw machine learning, how come nobody is paying me a million bucks for my work?" To which I said "let me ask you something, when you were studying mech-e in school, did you ever use steam tables?" yeah. "Did you learn about the Carnot cycle?" yeah. "Have you considered the fact that our industry is 200 years old? It stands to reason that our jobs are not hot shit anymore. Be glad you like your work and are still paid well; ignore the new kids if you can."

MattGaiser · 6 years ago
Metal economy is huge, but there are inputs. Software engineers have no inputs into our projects besides our work and some hardware and electricity. A developer is 99% of the cost of a piece of software.
underdeserver · 6 years ago
In other words, your value-added as a software engineer is significantly higher, as a fraction of the money in a transaction, than the metalworker's.

This is because of leverage. Implement software that speeds up a process by 20% once, and every time that process is used from then on the speedup adds value.

We're lucky to be working in a field that enables us to add a lot of value, for relatively little capital costs, and pocket a good share of the difference.

dwaltrip · 6 years ago
They listed music as a counter-example to this. No inputs = zero marginal cost.
ComodoHacker · 6 years ago
You've missed coffee!
whateveracct · 6 years ago
What would cause it to not last outside of precedent? In all those cases, it sounds like middlemen exist that corner the end-market that you gotta go through to make big money. How would that even work with software in the age of the internet, open source, and commodity cloud infra?
tlb · 6 years ago
I don't know. Maybe this time is different.

I have this book from 1880 about steam locomotives, where the preface talks about how all the most ambitious people are going into steam engineering. Which they were, for a while.

The answer might be, until something better comes along.

save_ferris · 6 years ago
AI-driven software development down the road could theoretically commoditize developer skills.

I sometimes wonder how many decisions I make per day that an AI could replicate in some repeatable way. Who knows, but nothing lasts forever.

lainga · 6 years ago
Maybe that analogy would be accurate if you could make new and pleasing music out of hundreds of small samples of other music, and also 90% of the musicians were used to either getting their samples via torrent or picking one album and playing it in an orchestra of 5,000 for the next 40 years
golergka · 6 years ago
That's literally how most of music production works. You torrent sample libraries, get used to a couple of genres that you do well, and then use the same tools all over again for every client.
tree3 · 6 years ago
> What's special about the software economy is that people who write the software take home a large fraction of it

I don't think this is true. Take all the non-tech companies that rely on software and hire tons of engineers, such as insurance and banking.

6gvONxR4sf7o · 6 years ago
My hypothesis for why tech has high salaries is stock compensation and fast growth. For example, Google stock is nearly 2x what it was 3-4 years ago. If you have a four year grant and had about half your comp in stock, then 2xing the stock means you're making 50% more now, assuming you didn't get any promotions or anything. If you're trying to hire folks away from these situations, your pre-stock-growth starting offer has to compete with their post-stock-growth comp, so starting offers have pressure to grow over time.
dredmorbius · 6 years ago
Curious what fields return what fractions of benefits / value / profits to what participants, and how you'd measure and classify those.

There's SIC / NAICS / ISIC codes, or tier classifications, ranging from three (Qesnay) to five (Clark (1940), Hatt and Foote (1953), and Bell (1973)):

[A]n economy's major sectors, as delineated by Clark (1940), Hatt and Foote (1953), and Bell (1973), correspond to major stages in the essential life process. The primary sector -- agriculture, fishing, lumber, mining, oil and gas -- represents the extraction of matter from the environment to produce energy, including the calories to sustain individual organisms. The secondary sector -- processing primary goods, as in construction and manufacturing -- represents the synthesis of matter and energy into more organized forms (negentropy). The tertiary sector, including transportation and utilities, represents the infrastructure for distributing matter and energy about the system, while the quaternary sector -- trade, finance, insurance, and real estate -- constitutes a parallel infrastructure for the collection, processing, and distribution of information that is necessary in all living system for the control of material flows. Finally, the "highest" of all sectors in its remove from the physical environment is the quinary sector, including government, law, and education, representing the societal programming -- socialization, education, law making -- and collective or representative decision making to effect control.

-- James Beniger, *The Control Revolution,8 p. 179.

For participants, perhaps: unskilled labour, skilled labour, professionals, managers, finance, consumers?

lol636363 · 6 years ago
And just because in other industries people are used to taking smaller portions of revenue they generated, doesn't mean that we should do same.

Also unlike in some creative industries, software engineers tend to have higher education and are better able to understand their economic contributions.

risyachka · 6 years ago
First of all, software is not a creative industry. Creatives always took home a small fraction for many obvious reasons.

Software solves hard problems it is constantly evolving and updating so you need lots of personnel to maintain it, with a lot of knowledge so it will never be cheap, and great engineers to create it in the first place.

Take away a bunch of artists nothing will change. Take away a bunch of critical software - the world will stop.

So no, it will last and it will last long, as the world becomes more and more technological.

It is unprecedented because software and computer world in general is a huge breakthrough and is only 30 years old. Music on the other hand is thousands of years.

TheSpiceIsLife · 6 years ago
> Take away a bunch of artists nothing will change. . Take away a bunch of critical software - the world will stop.

Is that right?

Is there any evidence that a society can exist without art?

There’s an overwhelming body of evidence that suggests it can do so without software.

phamilton · 6 years ago
> Musicians don't take home half of music revenue. In most creative industries, the creatives take home less than 1/10th.

Perhaps the difference is that musicians don't change a completed work. There is no maintenance cost. A song doesn't become useless and obsolete if you don't pay the musician to continually improve it.

For static software, I'd expect it to look more similar. How much of Tetris went to the people who wrote the software?

momokoko · 6 years ago
Most of the people writing software for the companies listed in this article are freelance workers in lower wage companies. They make close to, and sometimes less than minimum wage for high wage nations.

Startups pay well because speed is so important and faang pays well because their margins are enormous and the risk of those shrinking is worth paying top dollar for the absolute best talent in the world.

franciscop · 6 years ago
Having read patio11/kalzumeus a lot (excelent blog posts and talks!), I'd say if he has a law named after him, it should be "charge more" or some fancier title like "you are not charging enough".
secondbreakfast · 6 years ago
Lol, I agree that should be the real patio11 law
jriordan42 · 6 years ago
Or maybe a rule or such for general peeps that doesn't necessarily involve some special coffee-drinking in trendy Oregon? And what the heck is a "bed-and-breakfast type coffee tray"?

Or, Patio's Law, rephrsased: "Look at the very significant things you encounter with fresh eyes. You already know how to get to the crux of issues. When you get there, FRESH EYES!".

dspig · 6 years ago
> And what the heck is a "bed-and-breakfast type coffee tray"?

A tray loaded with tea and coffee making equipment and supplies, like you get in hotel rooms. Not a tray for carrying things around.

peterlk · 6 years ago
A friend has described these to me as "dark matter companies". They are everywhere, and they permeate industries, but you never see them. They work in small, unmarked offices outside of the standard tech hubs. Some of these companies make billions, but you've never heard of them, and they'd like to keep it that way.

In other cases, they're small companies that own a market that's too small for a large competitor to go after. $10m/yr will not make VCs happy. But it will certainly pay nicely to a team of 12.

Rzor · 6 years ago
It reminds me of Hidden Champions.

>Hidden champions are relatively small but highly successful companies that are concealed behind a curtain of inconspicuousness, invisibility, and sometimes secrecy.

https://en.m.wikipedia.org/wiki/Hidden_champions

MattGaiser · 6 years ago
I’ve had four jobs in my life and have always been stunned by what is still done by hand. Every company had a task which could be heavily automated but was instead consuming 4-30 people.

So if you think the software market is large, consider all the stuff software never reached.

_lx4l · 6 years ago
We have an "internal systems" team at my current company to solve this problem. The product manager for the team knows everyone and keeps tabs on what's being done that could be automated. It's not used to replace people (at least it hasn't been yet) rather it's used to allow the team to stay the same size and scale up their operations to meeting the growing business demands.

I think many companies could benefit from a team like this.

MattGaiser · 6 years ago
One of my four jobs was on such a team. Unfortunately, they canned it (after I left) as they couldn't figure out what it did.

If my team of 8 devs had just one dedicated to improving infrastructure and processes, we could probably increase our overall output by 30% in a year.

icelancer · 6 years ago
Ha, I'm happy this exists. I created this department at the company I founded at and directed it for some time. We call it the internal tools department. It still exists today and is run by a former employee of the department. It's very valuable for us.
terryjsmith · 6 years ago
This is great. How do they deal with the on-going maintenance of the tools they build? Do they move to the main product team or does the internal systems team continue to maintain them?
cosmodisk · 6 years ago
I wrote a piece of code last year in probably no more than a few hours.Showed it to a few guys in my team.Instead of sharing my excitement,they were like "if you run this,what are we going to do then?". She was right,if I'd do it, the size of the team would be reduced by half.But then,what I'd get? Do I get a bonus the size of those employee's salary for 6 month? No.I'd get a grand or two and instead and a pat on a shoulder,while those guys won't find a job for momths.So what's the point?
MattGaiser · 6 years ago
Within the company, there is often no point. You want to be the guy selling it outside the company. You can easily claim tens of thousands for the same work then.
tcgv · 6 years ago
You're in a delicate situation, since you'd be to blame for your co-workers potentially loosing their jobs. Nevertheless, doing nothing is also risky, since someone else from another department could show up and automate away your jobs leaving you in a hard place, and you won't have any control over that.

If you propose the automation yourself, and plan it's adoption within your team, you may have a chance of taking advantage of it, and even try to bring in more responsibilities within the company to your team to secure your teammates jobs.

recursive · 6 years ago
The point is getting that thousand bucks before someone else does. Or to make the company efficient enough to survive in a market where the other company's already efficient.
shamano · 6 years ago
Isn't really anything your team could do? Usually there are lot of fronts people could work on and bring more revenue to the company. Try to find those to redirect your team and implement your solution.
tootie · 6 years ago
I've seen this even at technology companies. It's like our devs hours are valuable so we can't invest them in something everyone is comfortable doing with a spreadsheet already.
MattGaiser · 6 years ago
Internal access to developers is absurdly structured a lot of the time.

One company a friend worked for billed internal developers at twice what IBM would charge for projects.

At other companies, dev time is allocated without any kind of cost analysis whatsoever. It reminded our Romanian business analyst of the Soviet Union.

qppo · 6 years ago
This happens to me a lot, but it's basically a kind of technical debt. Most of the time the upfront time investment to automate something properly versus doing it manually is hard to justify. Especially if it's a task that only I understand and now I need to document the problem and the automation instead of just the problem.

Business logic doesn't make for elegant APIs that I can hide behind a script and throw on a server, even if it's repetitive or tedious.

dillonmckay · 6 years ago
We are always looking for ideas!

Can you give a few examples, please?

MattGaiser · 6 years ago
Sure

A tool where you are given a picture/scan of a table and it spits out a table that can be pasted into Excel. This was at a bank where numerous people spent half their days manually typing in scanned documents into the same table in Excel. You would double a $70,000 a year financial analyst's productivity with this.

A portal to manage employee and employer documents. I.e where both you and your employer can easily access your T$ (Canadian tax form), offer letter, certifications, police checks, etc.

Software to manage which options a client ordered and what their selection was of that option as well as autogenerate the appropriate SQL queries from a client config template. The current process consisted of a mega word document with people fiddling around manually with it.

Happy to provide more.

ladberg · 6 years ago
Not OP but I had a friend who has interned at a few record labels. He's not really a programmer, but knows enough about programming to know what kind of task should be automated. He described a portion of his job to me that he and a bunch of other entry-level workers spent a few hours a day doing (basically scraping and storing data off the internet to be sent to business people for analysis).

I worked with him to develop a Python script do basically automate half his job in a few hours that could have saved the company tens of thousands of dollars. The company didn't want to dedicate/hire an actual programmer to maintain it, so they kept paying employees to manually scrape the web.

The crazy part is the next summer he interned at a different company and literally the exact same thing happened. He re-made the original script, saved tons of work, and the new company still didn't end up using it after he left.

vorpalhex · 6 years ago
Bulk downloading and resizing photos in weird spreadsheets.

Managing attributes and taxonomies for ecommerce.

Capitalizable hour analysis for software projects.

That's just stuff from the last few weeks. None of these are hard to automate but the workflow integration is the tricky bit.

voidfunc · 6 years ago
This does not just apply to software..., tons of small and medium sized businesses and opportunities out there. For engineers you will most likely never notice them if you're caught up in the Silicon Valley / VC thing.

Of course it requires getting out of your comfort zone... a lot of dev's just want to exchange labor for cash and grind out code because it is comfortable and cozy (right now).

There are tons of small towns and cities with their own economies. And a lot of these places it means a lot if the people purchasing your product or service can get on a phone and talk with someone 20 or 30 minutes away max.

gav · 6 years ago
It wasn’t until I got a job in consulting and started traveling to what are often dismissed as the “fly-over states” that I got to see billion-dollar B2B businesses that were basically unheard of outside of their market. The B2B e-commerce market alone is over a trillion dollars.

There’s a lot of opportunities for ERP developers and other tech roles that don’t exist in SV.

chadash · 6 years ago
I spoke to a guy recently who works for a company doing $300 million revenue/year as a wholesale distributor of internet networking equipment (think finger optic cables and equipment for housing them underground). Their customers are the ISPs.

The company is privately owned and not venture backed so you'll never hear of them unless you are in that business.

hnick · 6 years ago
> The company is privately owned and not venture backed so you'll never hear of them unless you are in that business.

Is the implication that venture backing needs growth so they get heavily involved in the media circus? I suppose that makes sense. I've always liked these "shadow industries", I've run into a few personally looking for things like special cut metal or wholesale pie crust or curtain rails.

pascalxus · 6 years ago
the types of opportunities that lead to SaaS businesses, are extroadinarily hard to find. I've gone to dozens of dozens of networking events and talked to dozens of people from a variety of industries. I've done informational interviews, etc. It's very difficult to find problems that don't have good enough solutions. Most of the time people are pretty happy to continue dealign with the problem the way they have been.
chii · 6 years ago
But that's why when you _do_ find a solution, it's worth money.

But i agree that it's fundamentally a people business - you're trying to convince a business owner to change their way of working for the better. You will need to present evidence that it is _indeed_ better - that's even harder than it sounds. And in most cases, SaaS providers are very biased on the value provided vs charged. I tend to think business owners as conservative, and therefore, the new SaaS product will have to provide extraordinary value to be considered.

Pmop · 6 years ago
That might be just the entry point for me, since I'm having a hard time at landing my 1st job as junior. I feel like I'll have a good time and lots of fun anyways. Any advice on how to approach clients? (I can do (full-stack) web development and solve problems/ optimize solutions with algorithms and meta-heuristics.)
CyberDildonics · 6 years ago
If you can't land a job as a junior programmer, you don't want to go around to businesses and end up responsible for promises you can't keep.
Kinrany · 6 years ago
This thread seems to suggest that there are heaps of 20$ bills lying all over the world and accessible to any software engineer.

That they are not being picked up suggests that there's some other constraint. Either extracting this value is not really worth one's time, or the bottleneck is not the ability to automate things but some other rare skill.

improv32 · 6 years ago
There is a huge amount of these $20 bills lying around in fact. The thing is they're not that easy to pick up. These ERP systems are often fairly bespoke, designed for the workflow and needs of specific industries, or even specific niches in industries.

I work for one of these bespoke ERP companies, our niche is CNC machine shops (huge industy you don't hear much about). Our software was grown organically out of tools we made to manage our own CNC shop, spun out into its own company. That deep domain knowledge is what allows us to make a competitive product.

If this kind of stuff interests you we're hiring: https://www.proshoperp.com/company/careers/

liotier · 6 years ago
> These ERP systems are often fairly bespoke

That is the paradox with ERP: they are sold as off-the-shelf solutions but customization costs twice the licenses and always ends up producing a bespoke monster.

MattGaiser · 6 years ago
> This thread seems to suggest that there are heaps of 20$ bills lying all over the world and accessible to any software engineer.

I argue that they are. It is just that the dollar bills are stuck in the mud or hidden under a leaf or just down paths you rarely take.

The bottleneck is knowing about them. You need to be the kind of person who thinks everything is done poorly and then thinks of ways to do it better.

The other bottleneck is that extracting them frequently requires annoying human interaction, but if you are willing to do it endlessly, there is plenty to do. I'm not and I lose out on a lot of projects as I don't want to do that.

But I know some absolutely terrible software developers (i.e. expect to see your password in the source code kind of developer) who outearn most devs I know simply by selling vast amounts of solutions to the thousands of people they meet every year.

Spend the day talking to random shop owners. Spend the night hacking together a fix for them. Collect an ongoing fee.

goatherders · 6 years ago
This. I think one of the places where young entrepreneurs get stuck is in wanting to build something that gets noticed as much (or more) than building something that makes them financially successful. There are thousands of problems that need to be solved and can be solved by software. And almost all of them are super boring and niche specific.
austinl · 6 years ago
Engineers are unaware of the needs of these businesses, and often, the businesses are unaware that it's possible to solve some of their problems with software. That's why successful engineer-founders often have prior industry experience, or a co-founder who is an expert in the given industry.

I remember working on a construction survey crew in high school, where all survey measurements were recorded by hand in notebooks, and then manually transferred to Excel to perform some trivial operations. The office had hundreds of notebooks lying around. The leadership had no idea it was possible to have an application built to solve something like this. Perhaps they're using something now — I sure hope so.

thdrdt · 6 years ago
Maybe it's also because some software sounds dull and old fashioned so people don't talk much about it.

I am into ERP, WMS, TMS and BI software. You don't hear much about this on HN but worldwide it's huge because it is what logistics run on.

Most of the time it's also old software and I believe there is a lot of money to be made. For example machine learning can be used to estimate goods that have to be purchased to keep optimal stock.

RickS · 6 years ago
For software people, the missing link is knowledge of a domain. Not domain expertise, the rare part is merely knowing that domains even exist to be searched for $20 bills.

The article mentions actuarial software for funeral homes. In retrospect, of course that's a thing, but asked to name low-hanging domains for lifestyle software businesses, few of us would ever arrive at that answer, let alone in the first 500 guesses. And is it sexy enough that we'd stake our livelihood on it?

I'm reminded of this XKCD comic: https://xkcd.com/1425/

People in these small niches can't easily tell the difference between things that are too hard to be worth the money vs things that are solved by a for loop in an afternoon, and they don't talk about their work in a way that makes it obvious that there's gold in the hills.

This is one reason that user research is an entire field that gets paid almost like engineering: framing the problem can be just as hard as the problem itself.

czechdeveloper · 6 years ago
It's also funny how nowadays such bird detection would possibly be just another few hours.
ProZsolt · 6 years ago
I really like that XKCD strip. A problem that was once hard now can be solved by a teenager with Tensorflow and a bunch of pictures.
ska · 6 years ago
Software engineering skills alone are definitely not enough.

There are a ton of these heaps of bills, sure, but they aren't lying around on the floor so much as on hilltops and mountains, to abuse an analogy.

It may help to think of these opportunities as a form of technology arbitrage. In order to take advantage, one or more people have to a) understand the technology, b) understand the problem domain c) understand the workflows and d) identify and communicate effectively to the people who can actually make the decisions.

How many people do you know who are both competent and interested in all of these aspects? It's not that any of these skills are particularly rare, but they are rare in the same person and there aren't natural communities, for the most part, of people who can do all aspects.

Another issue is sometimes (often, really) the technology aspect is the smallest and least interesting part of the problem.

zelos · 6 years ago
To me it seems that large parts of 'average' office jobs are things that a software developer would automate so they took a tenth of the time. Ctrl-C/Ctrl-V and undo are advanced computing to many people.

But of course, the people doing those jobs aren't going to go out of their way to make 90% of their job redundant.

kondro · 6 years ago
A lot of it is developers not understanding, being aware of (or simply being uninterested in) the problems other businesses face.

And businesses not knowing what _can_ be done with software to commission developers to solve it for them (or if they do, the lack of empathy from the developer ends up with them building a half-assed solution).

Yhippa · 6 years ago
The ones I've seen are a right-place-right-time kind of things. One company I saw scanned and collected auto parts instructions to be searchable via a web UI. I'm not going to come up with that out of the blue. These people are close to a problem and figured out an automation step that adds a lot of value.
rorykoehler · 6 years ago
Personally the biggest difficulty I have had is getting ops people to change their habits. Software is only useful if people use it and retrofitting software onto existing processes is infinitely more challenging than building a software driven company from the ground up.
pascalxus · 6 years ago
>> "heaps of 20$ bills lying all over the place" This isn't the case from my experience. I've networked with and interviewed dozens of people. It's incredibly difficult to find worthwhile problems that can be automated and aren't already automated. And, even here in the bay area, people tend to react pretty negatively the moment you even mention "repetitive processes". No one likes automation: they associate it with getting fired. So, if you ask people about this, they tend to clam up and stop talking pretty quickly.

And when you get right down to it, and start having the type of deep dive talks need to have with potential customers, you'll quickly discover there's already solutions to almost every conceivable problem out there, even in the some of the most esoteric fields you can imagine.

MattGaiser · 6 years ago
The Bay Area would have far fewer easy problems as every 2nd person is a developer. It is fished out.

> people tend to react pretty negatively the moment you even mention "repetitive processes". No one likes automation: they associate it with getting fired.

Those aren't the people you should be talking to.

> you'll quickly discover there's already solutions to almost every conceivable problem out there, even in the some of the most esoteric fields you can imagine.

That is irrelevant for most as you sell them the implementation of that solution then. It is a $20 bill, not a Y-Combinator worthy idea.

spitfire · 6 years ago
Did you know there's software to tell you how to unspool fiberoptic cable when laying underwater lines?

It's one massive long integral math equation.

It rents (yes, rents) out for $20K a week.

There's also coffee logistics software. There's software for private club management(tennis, polo, etc), moving and storage, even software just for spa's.

There is so much opportunity out there, the trick is finding it, and finding a working sales method.

juped · 6 years ago
It's sales and marketing.
Kinrany · 6 years ago
There seems to be more people doing sales/marketing than software engineers (though I don't have any numbers).

Why aren't they picking up the bills?

onlyrealcuzzo · 6 years ago
There are tons of things that are worth the time to automate but aren't because they aren't worth the additional cost to sell the automation.

Just because something can be done automatically doesn't mean companies can magically discover it and pay for it. You still have to sell it to them.

irrational · 6 years ago
I work for a Fortune 150 manufacturing company. When I started working here there was no IT group at all (it was all outsourced). The CEO and President said many times that we were not a software/technology company and that would never be a core focus. Nearly 2 decades later, technology is now listed as number 2 of our top 5 core focus. We are working on converting all contractors into full time employees. The IT group is no longer outsourced and takes up 20-30 buildings, out of 80 buildings on campus. We are still a manufacturing company, but software (websites) has become a huge part of the company with thousands of employees working on it.
corpMaverick · 6 years ago
I have learned to avoid companies that don´t understand that they are a software/technology company. You can't scale up if don't automate. IMO, It is just an excuse to do mediocre technical work.
dillonmckay · 6 years ago
What do you manufacture?
vbordo · 6 years ago
What kind of manufacturing applications does IT manage?
irrational · 6 years ago
Mostly sales websites and design applications, not manufacturing applications.