this post was submitted on 17 Oct 2023
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(note: I am a social democratic capitalist, don't take this as an anti-capitalist rant)
Ever wonder why capitalistic IT is so expensive?
It's not because of the cost of developers, hardware or internet, even though those things are not cheap.
It's mainly because companies like Amazon, Google and Microsoft make insanely huge profits and those profits must come from revenue. And to ensure they don't lose market share, they overspend an insane amount on hiring armies of the best developers, most of whom aren't doing much productive work, but are paid hefty salaries.
And they also have complex internal politics, manager layers, architects, and a whole lot of highly paid people working alongside the developers and slowing them down.
So the parent is totally right. Hosting something like Lemmy and developing it isn't that expensive, especially because it runs on a lot of volunteer time and doesn't have a lot of fluff around it.
And also, they aren't spending armies of developers and UX engineers to analyze and maximize the number of hours you spend on Lemmy. Or to maximize ad revenue. Or to implement DRM. Or to think of a premium offer and then develop a two tiered experience.
Once you get rid of all the capitalistic fluff, most of the basics we need are surprisingly cheap and easy to develop and run.
I do believe people should make it a regular practice to pay for the software they like and use. So donate here and there.
But if you are ever in doubt, just look at the sheer number of Linux distros built and maintained by volunteers.
I'd suggest the "complex internal politics, manager layers, architects" -- and the fancy offices, cafeterias, and other amenities -- are actually quite a lot more expensive than the developers.
But don't underestimate ads, and things that are similar to ads. In competitive markets, ads are really expensive, because ads are rivalrous. Venture A has to outbid Venture B for ad placement. The same sort of logic goes for hiring, especially hiring of trend-driven fields like project management. ("I'm a Scrum Master, who are you, a scum master?")
I agree.
In terms of things that make capitalistic IT expensive, #1 would be the profit extracted by shareholders (either directly or through licensing schemes) , #2 would be the layer of highly paid "very important people" and then #3 would be developer cost.
One note: It's pretty rare for tech companies to directly issue profits to shareholders (i.e. as dividends). Rather, profits are usually reinvested into expanding the company; and shareholders make money by selling shares that have risen in value.
Eh... Tech companies do some of the biggest stock buybacks, which is a transfer of profits to shareholders.
But yes, they also reinvest money.