Comment by jascha_eng
5 hours ago
None of his math really checks out. Building a piece of software is or at least was orders of magnitudes more expensive than maintaining it. But how much money it can make is potentially unbounded (until it gets replaced).
So investing e.g. 10 million this year to build a product that produces maybe 2 million ARR will have armortized after 5 years if you can reduce engineering spend to zero. You can also use the same crew to build another product instead and repeat that process over and over again. That's why an engineering team is an asset.
It's also a gamble, if you invest 10 million this year and the product doesn't produce any revenue you lost the bet. You can decide to either bet again or lay everyone off.
It is incredibly hard or maybe even impossible to predict if a product or feature will be successful in driving revenue. So all his math is kinda pointless.
The longer software is sold the more you need to maintain it. In year one most of the cost is making it. Over time other costs start to add up.
> Building a piece of software is or at least was orders of magnitudes more expensive than maintaining it
This feels ludicrously backwards to me, and also contrary to what I've always seen as established wisdom - that most programming is maintenance. (Type `most programming is maintenance` into Google to find page after page of people advancing this thesis.) I suspect we have different ideas of what constitutes "maintenance".
I like the good ol' "80% of the work in a software project happens before you ship. The other 80% is maintaining what you shipped."