450
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 11 May 2024
450 points (99.1% liked)
Technology
33591 readers
437 users here now
This is the official technology community of Lemmy.ml for all news related to creation and use of technology, and to facilitate civil, meaningful discussion around it.
Ask in DM before posting product reviews or ads. All such posts otherwise are subject to removal.
Rules:
1: All Lemmy rules apply
2: Do not post low effort posts
3: NEVER post naziped*gore stuff
4: Always post article URLs or their archived version URLs as sources, NOT screenshots. Help the blind users.
5: personal rants of Big Tech CEOs like Elon Musk are unwelcome (does not include posts about their companies affecting wide range of people)
6: no advertisement posts unless verified as legitimate and non-exploitative/non-consumerist
7: crypto related posts, unless essential, are disallowed
founded 5 years ago
MODERATORS
If you are a small company then yes. But i would argue that for larger companies this doesn't hold true. If you have 200 employees you'll need an IT department either way. You need IT expertise either way. So having some people who know how to plan, implement and maintain physical hardware makes sense too.
There is a breaking point between economics of scale and the added efforts to coordinate between your company and the service provider plus paying that service providers overhead and profits.
If coordinating with service providers is hard for a firm, I would argue the cost effective answer isn't "let's do all this in house". Many big finance firms fall in this trap of thinking it's cheaper to build v buy, and that's how you get everyone building their own worse versions of everything. Whether your firm is good at the markets or kitchens or travel bookings, thinking you can efficiently in-source tech is a huge fallacy.
it is not about it being hard. It simply creates effort to coordinate. And this effort needs to be considered. If you do things externally that means there is two PMs to pay, you need QMs on both sides, you need two legal/contract teams, you need to pay someone in procurement and someone in sales...
I agree with you that doing software inhouse when there is good options on the market is usually not a good idea. But for infrastructure i don't see there to be as much of an efficiency loss. Especially as you very much need experts on how to set things up in a cloud environment and you better look carefully at how many resources you need to not overpay huge amounts.