Comment by api
9 days ago
The entire thing is because of subscription revenue.
It’s self reinforcing because those companies that get subscription revenue have both more revenue and higher valuations enabling more fund raising, causing them to beat out companies that do not follow this model. This is why local first software died.
I remember seeing somebody summarize this as "SaaS is a pricing model" or "SaaS is financialization" and it totally rings true. Compared to normal software pricing, a subscription gives you predictable recurring revenue and a natural sort of price discrimination (people who use your system more, pay more). It's also a psychological thing: folks got anchored on really low up-front prices for software, so paying $2000 for something up-front sounds crazy even if you use it daily for years, but paying $25/month feels reasonable. (See also how much people complain about paying $60 for video games which they play for thousands of hours!)
It's sad because the dynamics and incentives around clear, up-front prices seem generally better than SaaS (more user control, less lock-in), but almost all commercial software morphs into SaaS thanks to a mix of psychology, culture and market dynamics.
There are other advantages to having your software and data managed by somebody else, but they are far less determinative than structural and pricing factors. In a slightly different world, it's not hard to imagine relatively expensive software up-front that comes with a smaller, optional (perhaps even third-party!) subscription service for data storage and syncing. It's a shame that we do not live in that world.
SaaS is a business model. Cloud is DRM. If you run the software in the cloud it can't be pirated and there is perfect lock-in. Double if the data can't be exported.
Related: I've been incubating an idea for a while that open source, as it presently stands, is largely an ecosystem that exists in support of cloud SaaS. This is quite paradoxical because cloud SaaS is by far the least free model for software -- far, far less free than closed source commercial local software.
Yes, this is the main reason for doing "cloud" I believe. Otherwise, it would make no sense for someone like Adobe to adopt this model, since the softwares still largely require to run locally for technical reasons.
It's the same thing as the subscriptions for movies like Netflix, except at least in the last case we can fight back with various means (and it's not a necessity).
The SaaS model is basically a perfect racketeering setup, I think it should be outlawed at least philosophically. There is no way business is not going to abuse that power and they have already shown as much...
I agree with your sentiment on Open Source. I think like many of these types of things, it lives in contradictions. In any case, Linux as it is today, couldn't exist without the big commercial players paying quite a bit to get it going.
Correct. SaaS is a business model, not a technical concept. But the real problem is that there is no equivalent business model for selling local first software. Traditional desktop apps were single purchase items. Local first is not because you just navigate to a website in your browser and blammo you get the software. What we need is a way to make money off of local first software.
> What we need is a way to make money off of local first software.
No, what we need is a way for people to not starve so that they don't have to make money at all and can focus instead on their passion project(s). Cough UBI cough
7 replies →
> there is no equivalent business model for selling local first software.
Sure there is: “$500 upfront or $21/mo for 24 months *”
* if you don’t complete you 24 payments, we freeze your license.
1 reply →
I'm not understanding why we have to have a model that replicates SaaS pricing for local-first software?
Obsidian is doing a pretty good job selling sync functionality to their free client. Because the have a really good markdown editor implementation IMHO with community plug-in support that IMHO beats every PKM cloud tool out there that competes with them.
This is the canonical example I believe. The product is ~35 years old.
https://www.gpsoft.com.au/
It's the missing middle. A manager can just expense $25/mo, while $2000 requires an approval process, which requires outside sales, which means it really costs at least $20,000.
Ha! If only that were true. I gave up on my effort to buy a one year license for $25 after filling out too many TPS reports. Which is probably part of the design of the system.
The root cause of the problem is that it's easier to make personalized stuff with server/backend (?cloud?) than without maybe?
Example: I made a firefox extension that automatically fills forms using LLM. It's fully offline (except OPTIONALLY) the LLM part, optionally because it also supports Ollama locally.
Now the issue is that it's way too hard for most people to use: find the LLM to run, acquire it somehow (pay to run it online or download it to run in Ollama) gotta configure your API url, enter API key, save all of your details for form fulling locally in text files which you then have to backup and synchronize to other devices yourself.
The alternative would be: create account, give money, enter details and all is synced and backedup automatically accross devices, online LLM pre-selected and configured. Ready to go. No messing around with Ollama or openrouter, just go.
I don't know how to solve it in a local way that would be as user friendly as the subscription way would be.
Now things like cars and washing machines are a different story :p
> The root cause of the problem is that it's easier to make personalized stuff with server/backend (?cloud?) than without maybe?
That, and also there are real benefits to the end user of having everything persisted in the cloud by default.
I don't think having to manually sync preferences (or set up an unnecessary LLM) is really "the root cause" of "why local first software died".
Can the LLM not help with setting up the local part? (Sorry, was just the first thought i had.)
Not sure why you're downvoted. This would probably work in the future when LLM's are a standard part of every OS I supposed.
But by then my extension probably also won't be needed anymore as it would likely be integrated in the OS.
Pretty much greed being a universally destructive force in the world as usual.
When Apple joined the madness, all hopes where lost (that was a long time ago now, sight)