As a SaaS startup scales, sales and customer support staff pay for themselves, and the marginal cost to serve your one-thousandth versus one-millionth user is near-zero. The result? Some SaaS companies achieve gross profit margins of 75 to 90 percent, rivaling Windows in its monopolistic heyday.

Rent-seeking has become an explicit playbook for many shameless SaaS investors. Private equity shop Thoma Bravo has acquired over four hundred software companies, repeatedly mashing products together to amplify lock-in effects so it can slash costs and boost prices—before selling the ravaged Franken-platform to the highest bidder.

In the Kafkaesque realm of health care, software giant Epic’s 1990s-era UI is still widely used for electronic medical records, a nuisance that arguably puts millions of lives at risk, even as it accrues billions in annual revenue and actively resists system interoperability. SAP, the antiquated granddaddy of enterprise resource planning software, has endured for decades within frustrated finance and supply chain teams, even as thousands of SaaS startups try to chip away at its dominance. Salesforce continues to grow at a rapid clip, despite a clunky UI that users say is “absolutely terrible” and “stuck in the 80s”—hence, the hundreds of “SalesTech” startups that simplify a single platform workflow (and pray for a billion-dollar acquihire to Benioff’s mothership). What these SaaS overlords might laud as an ecosystem of startup innovation is actually a reflection of their own technical shortcomings and bloated inertia.

Over 1,500 software startups are focused on billing and invoicing alone. The glut of tools extends to sectors without any clear need for complex software: no fewer than 378 hair salon platforms, 166 parking management solutions, and 70 operating systems for funeral homes and cemeteries are currently on the market. Billions of public pension and university endowment dollars are being burned on what amounts to hackathon curiosities, driven by the machinations of venture capital and private equity. To visit a much-hyped “demo day” at a startup incubator like Y Combinator or Techstars is to enter a realm akin to a high-end art fair—except the objects being admired are not texts or sculptures or paintings but slightly nicer faces for the drudgery of corporate productivity.

As popular as SaaS has become, much of the modern economy still runs on the humble, unfashionable spreadsheet. For all its downsides, there are virtues. Spreadsheets are highly interoperable between firms, partly because of another monopoly (Excel) but also because the generic .csv format is recognized by countless applications. They offer greater autonomy and flexibility, with tabular cells and formulas that can be shaped into workflows, processes, calculators, databases, dashboards, calendars, to-do lists, bug trackers, accounting workbooks—the list goes on. Spreadsheets are arguably the most popular programming language on Earth.

Once a company becomes an industry leader, its employees, from top to bottom, start thinking defensively. Suddenly, people feel they have more to lose from challenging the status quo than upending it. As a result, one-time revolutionaries turn into reactionaries. Proof of this about-face comes when senior executives troop off to Washington or Brussels to lobby against changes that would make life easier for the new up and comers.

Years of continuous improvement produce an ultra-efficient business system—one that’s highly optimized, and also highly inflexible. Successful businesses are usually good at doing one thing, and one thing only. Over-specialization kills adaptability—but this is a tough to trap to avoid, since the defenders of the status quo will always argue that eking out another increment of efficiency is a safer bet than striking out in a new direction.

Long-tenured executives develop a deep base of industry experience and find it hard to question cherished beliefs. In successful companies, managers usually have a fine-grained view of “how the industry works,” and tend to discount data that would challenge their assumptions. Over time, mental models become hard-wired—a fact that makes industry stalwarts vulnerable to new rules. This risk is magnified when senior executives dominate internal conversations about future strategy and direction.

With success comes bulk—more employees, more cash and more market power. Trouble is, a resource advantage tends to make executives intellectually lazy—they start believing that success comes from outspending one’s rivals rather than from outthinking them. In practice, superior resources seldom defeat a superior strategy. So when resources start substituting for creativity, it’s time to short the shares.

One quick suggestion: Treat every belief you have about your business as nothing more than a hypothesis, forever open to disconfirmation. Being paranoid is good, becoming skeptical about your own beliefs is better.

For Google Search to increase its profits, it must shift value from web publishers, advertisers and/or users to itself. The only way for Google Search to grow is to make itself worse.

Google’s product managers are each charged with finding ways to increase the profitability of their little corner of the googleverse. That increased profitability can only come from enshittification. Every product manager on Google Search spends their workdays figuring out how to remove a Jenga block. What’s worse, these princelings compete with one another. Their individual progression through the upper echelons of Google’s aristocracy depends as much on others failing as it does on their success. The org chart only has so many VP, SVP and EVP boxes on it, and each layer is much smaller than the previous one. If you’re a VP, every one of your colleagues who makes it to SVP takes a spot that you can no longer get. Those spots are wildly lucrative. Each tier of the hierarchy is worth an order of magnitude more than the tier beneath it. The stakes are so high that they are barely comprehensible. That means that every one of these Jenga-block-pulling execs is playing blind: they don’t — and can’t — coordinate on the ways they’re planning to lower quality in order to improve profits. The exec who decided to save money by reducing the stringency of phone number checking for business accounts didn’t announce this in a company-wide memo. When you’re eating your seed-corn, it’s imperative that you do so behind closed doors, and tell no one what you’ve done. Like any sleight-of-hand artist, you want the audience to see the outcome of the trick (the cost savings), not how it’s done (exposing every searcher in the world to fraud risk to save a buck).

Google/Apple’s mobile duopoly is more cozy than competitive. Google pays Apple $15–20 billion, every single year, to be the default search in Safari and iOS. If Google and Apple were competing over mobile, you’d expect that one of them would drop the sky-high 30 percent rake they charge on in-app payments, but that would mess up their mutual good thing. Instead, these “competitors” charge exactly the same price for a service with minimal operating costs.

your bank, your insurer, your beer company, the companies that make your eyeglasses and your athletic shoes — they’ve all run out of lands to conquer, but instead of weeping, they’re taking it out on you, with worse products that cost more.

Netflix could buy 10 top quality screenplays per year with the cash they’ll spend on that one job.  They must have big plans for AI.There are also a half dozen AI job openings at Disney. And the tech-based streamers (Apple, Amazon) already have made big investments in AI. Sony launched an AI business unit in April 2020—in order to “enhance human imagination and creativity, particularly in the realm of entertainment.”

When Spotify launched on the stock exchange in 2018, it was losing around $30 million per month. Now it’s much larger, and is losing money at the pace of more than $100 million per month.

But the real problem at Spotify isn’t just convincing people to pay more. It runs much deeper. Spotify finds itself in the awkward position of asking people to pay more for a lousy interface that degrades the entire user experience.

Boredom is built into the platform, because they lose money if you get too excited about music—you’re like the person at the all-you-can-eat buffet who goes back for a third helping. They make the most money from indifferent, lukewarm fans, and they created their interface with them in mind. In other words, Spotify’s highest aspiration is to be the Applebee’s of music.

They need to prepare for a possible royalty war against record labels and musicians—yes, that could actually happen—and they do that by creating a zombie world of brain dead listeners who don’t even know what artist they’re hearing. I know that sounds extreme, but spend some time on the platform and draw your own conclusions.

a global pandemic struck, markets crashed, and the possibility of a democratic socialist presidency in America started to fade. Much of our work with clients has been about how to address new audiences in a time of massive fragmentation and the collapse of consensus reality.

All the while, people have been eager to launch new products more focused on impressions than materiality, and “spending on experiences” has become the standard of premium consumption.

it’s time to reassess the consumer experience that came along with the neoliberal fantasy of “unlimited” movement of people, goods and ideas around the globe.

Umami, as both a quality and effect of an experience, popped up primarily in settings that were on the verge of disintegration, and hinged on physical pilgrimages to evanescent meccas. We also believe that the experience economy is dying, its key commodity (umami) has changed status, and nobody knows what’s coming next.

Umami was the quality of the media mix or the moodboard that granted it cohesion-despite-heterogeneity. Umami was also the proximity of people on Emily’s museum panel, all women who are mostly not old, mostly not straight, and mostly doing something interesting in the arts, but we didn’t know exactly what. It was the conversation-dance experience and the poet’s play and the alt-electronica-diva’s first foray into another discipline. It was the X-factor that made a certain MA-1 worth 100x as much as its identical twin.

“Advanced consumers” became obsessed with umami and then ran around trying to collect ever-more-intensifying experiences of it. Things were getting more and more delicious, more and more expensive, and all the while, more and more immaterial. Umami is what you got when you didn’t get anything.

What was actually happening was the enrichment of financial assets over the creation of any ‘real wealth’ along with corresponding illusions of progress. As very little of this newly minted money has been invested into building new productive capacity, infrastructure, or actually new things, money has just been sloshing around in a frothy cesspool – from WeWork to Juicero to ill-advised real estate Ponzi to DTC insanity, creating a global everything-bubble.

Value, in an economic sense, is theoretically created by new things based on new ideas. But when the material basis for these new things is missing or actively deteriorating and profits must be made, what is there to be done? Retreat to the immaterial and work with what already exists: meaning. Meaning is always readily available to be repeated, remixed, and/or cannibalized in service of creating the sensation of the new.

The essential mechanics are simple: it’s stating there’s a there-there when there isn’t one. And directing attention to a new “there” before anyone notices they were staring at a void. It’s the logic of gentrification, not only of the city, but also the self, culture and civilization itself. What’s made us so gullible, and this whole process possible, was an inexhaustible appetite for umami.

eyond its synergistic effect, umami has a few other sensory effects that are relevant to our theory. For one, it creates the sense of thickness and body in food. (“Umami adds body…If you add it to a soup, it makes the soup seem like it’s thicker – it gives it sensory heft. It turns a soup from salt water into a food.”) For another, it’s released when foods break down into parts. (“When organic matter breaks down, the glutamate molecule breaks apart. This can happen on a stove when you cook meat, over time when you age a parmesan cheese, by fermentation as in soy sauce or under the sun as a tomato ripens. When glutamate becomes L-glutamate, that’s when things get “delicious.””) These three qualities: SYNERGY, IMPRESSION OF THICKNESS, and PARTS > WHOLE, are common to cultural umami, as well.

Umami hunting was a way for the West to consume an exotic, ethnic, global “taste” that was also invisible and up to their decoding / articulation.

when something is correctly salted, Chang argues, it tastes both over and undersalted at once. As a strange loop, this saltiness makes you stand back and regard your food; you start thinking about “the system it represents and your response to it”. He argues that this meta-regard keeps you in the moment and connected to the deliciousness of your food. We counter that it intensifies a moment in a flow, temporarily thickening your experience without keeping you anywhere for long.

strong flavors, namely umami, mark a surge of intensity in the flow of experience. It also becomes clear that paradox itself is at the heart of contemporary consumption. For example: “This shouldn’t be good but it is” “This doesn’t seem like what it’s supposed to be” “This is both too much and not enough” “I shouldn’t be here but i am” “This could be anywhere but it’s here”

Parts > Whole is just another way of saying a combination of things has emergent properties. In itself this doesn’t mean much, as almost any combination of things has emergent properties, especially in the domains of taste and culture. Coffee + vinegar is worse than its constitutive parts. A suit + sneakers is a greater kind of corny than either worn separately. Most emergence is trivial. The Umami Theory of Value centers on losing your sense of what’s trivial and what’s valuable.

If you tried to unpack your intuition, the absence of the there-there would quickly become evident. Yet in practice this didn’t matter, because few people were able to reach this kind of deep self-interrogation. The cycle was simply too fast. There was never time for these concoctions to congeal into actual new things (e.g. create the general category of K-Pop patrons for Central European arts institutions). We can’t be sure if they ever meant anything beyond seeming yummy at the time.

This was not meant to be a nihilistic, Gen-X faceplant (“nothing means anything any more”), since we think that perspective can paper over the nuances of consumer experience, business realities, and cultural crisis. Instead, we wanted to link macroeconomic and macrotrend observations to everyday experience, especially in the context of burgeoning collapse.

Lather rinse, repeat. Prodigy, geocities, collegeclub.com, MySpace, Friendster, Livejournal, Tumblr, Twitter. More besides. More next. And if one were to get big enough, like Facebook, this cycle doesn’t stop, it just sort of happens all at the same time without interruptions in service. All while we diaspora from site to site hoping there’s at least one more goddamned Diaryland Andrew out there who gives a fuck about the little universe they created and tempted human beings to set up their lives in.

To express power not by what you can give, but by what you can take away. And deeper still, this strange compulsion of conservatism to force other humans to be just like you.

The purposive design, production and marketing of legal but health-demoting products that stimulate habitual consumption and pleasure for maximum profit has been called ‘limbic capitalism’. In this article, drawing on alcohol and tobacco as key examples, we extend this framework into the digital realm. We argue that ‘limbic platform capitalism’ is a serious threat to the health and wellbeing of individuals, communities and populations. Accessed routinely through everyday digital devices, social media platforms aggressively intensify limbic capitalism because they also work through embodied limbic processes. These platforms are designed to generate, analyse and apply vast amounts of personalised data in an effort to tune flows of online content to capture users’ time and attention, and influence their affects, moods, emotions and desires in order to increase profits.

To write about something hard to explain, write a detailed letter to a friend about why it is so hard to explain, and then remove the initial “Dear Friend” part and you’ll have a great first draft.

To be interesting just tell your story with uncommon honesty.

Most articles and stories are improved significantly if you delete the first page of the manuscript draft. Immediately start with the action.

Each technology can not stand alone. It takes a saw to make a hammer and it takes a hammer to make a saw. And it takes both tools to make a computer, and in today’s factory it takes a computer to make saws and hammers. This co-dependency creates an ecosystem of highly interdependent technologies that support each other

On the other hand, I see this technium as an extension of the same self-organizing system responsible for the evolution of life on this planet. The technium is evolution accelerated. A lot of the same dynamics that propel evolution are also at work in the technium

Our technologies are ultimately not contrary to life, but are in fact an extension of life, enabling it to develop yet more options and possibilities at a faster rate. Increasing options and possibilities is also known as progress, so in the end, what the technium brings us humans is progress.

Libraries, journals, communication networks, and the accumulation of other technologies help create the next idea, beyond the efforts of a single individual

We also see near-identical parallel inventions of tricky contraptions like slingshots and blowguns. However, because it was so ancient, we don’t have a lot of data for this behavior. What we would really like is to have a N=100 study of hundreds of other technological civilizations in our galaxy. From that analysis we’d be able to measure, outline, and predict the development of technologies. That is a key reason to seek extraterrestrial life.

When information is processed in a computer, it is being ceaselessly replicated and re-copied while it computes. Information wants to be copied. Therefore, when certain people get upset about the ubiquitous copying happening in the technium, their misguided impulse is to stop the copies. They want to stamp out rampant copying in the name of "copy protection,” whether it be music, science journals, or art for AI training. But the emergent behavior of the technium is to copy promiscuously. To ban, outlaw, or impede the superconductivity of copies is to work against the grain of the system.

the worry of some environmentalists is that technology can only contribute more to the problem and none to the solution. They believe that tech is incapable of being green because it is the source of relentless consumerism at the expense of diminishing nature, and that our technological civilization requires endless growth to keep the system going. I disagree.

Over time evolution arranges the same number of atoms in more complex patterns to yield more complex organisms, for instance producing an agile lemur the same size and weight as a jelly fish. We seek the same shift in the technium. Standard economic growth aims to get consumers to drink more wine. Type 2 growth aims to get them to not drink more wine, but better wine.

to measure (and thus increase) productivity we count up the number of refrigerators manufactured and sold each year. More is generally better. But this counting tends to overlook the fact that refrigerators have gotten better over time. In addition to making cold, they now dispense ice cubes, or self-defrost, and use less energy. And they may cost less in real dollars. This betterment is truly real value, but is not accounted for in the “more” column

it is imperative that we figure out how to shift more of our type 1 growth to type 2 growth, because we won’t be able to keep expanding the usual “more.”  We will have to perfect a system that can keep improving and getting better with fewer customers each year, smaller markets and audiences, and fewer workers. That is a huge shift from the past few centuries where every year there has been more of everything.

“degrowthers” are correct in that there are limits to bulk growth — and running out of humans may be one of them. But they don’t seem to understand that evolutionary growth, which includes the expansion of intangibles such as freedom, wisdom, and complexity, doesn’t have similar limits. We can always figure out a way to improve things, even without using more stuff — especially without using more stuff!

the technium is not inherently contrary to nature; it is inherently derived from evolution and thus inherently capable of being compatible with nature. We can choose to create versions of the technium that are aligned with the natural world.

Social media can transmit false information at great range at great speed. But compared to what? Social media's influence on elections from transmitting false information was far less than the influence of the existing medias of cable news and talk radio, where false information was rampant. Did anyone seriously suggest we should regulate what cable news hosts or call in radio listeners could say? Bullying middle schoolers on social media? Compared to what? Does it even register when compared to the bullying done in school hallways? Radicalization on YouTube? Compared to talk radio? To googling?

Kids are inherently obsessive about new things, and can become deeply infatuated with stuff that they outgrow and abandon a few years later. So the fact they may be infatuated with social media right now should not in itself be alarming. Yes, we should indeed understand how it affects children and how to enhance its benefits, but it is dangerous to construct national policies for a technology based on the behavior of children using it.

Since it is the same technology, inspecting how it is used in other parts of the world would help us isolate what is being caused by the technology and what is being caused by the peculiar culture of the US.

You don’t notice what difference you make because of the platform's humongous billions-scale. In aggregate your choices make a difference which direction it — or any technology — goes. People prefer to watch things on demand, so little by little, we have steered the technology to let us binge watch. Streaming happened without much regulation or even enthusiasm of the media companies. Street usage is the fastest and most direct way to steer tech.

Vibrators instead of the cacophony of ringing bells on cell phones is one example of a marketplace technological solution

The long-term effects of AI will affect our society to a greater degree than electricity and fire, but its full effects will take centuries to play out. That means that we’ll be arguing, discussing, and wrangling with the changes brought about by AI for the next 10 decades. Because AI operates so close to our own inner self and identity, we are headed into a century-long identity crisis.

What we tend to call AI, will not be considered AI years from now

What we are discovering is that many of the cognitive tasks we have been doing as humans are dumber than they seem. Playing chess was more mechanical than we thought. Playing the game Go is more mechanical than we thought. Painting a picture and being creative was more mechanical than we thought. And even writing a paragraph with words turns out to be more mechanical than we thought

out of the perhaps dozen of cognitive modes operating in our minds, we have managed to synthesize two of them: perception and pattern matching. Everything we’ve seen so far in AI is because we can produce those two modes. We have not made any real progress in synthesizing symbolic logic and deductive reasoning and other modes of thinking

we are slowly realizing we still have NO IDEA how our own intelligences really work, or even what intelligence is. A major byproduct of AI is that it will tell us more about our minds than centuries of psychology and neuroscience have

There is no monolithic AI. Instead there will be thousands of species of AIs, each engineered to optimize different ways of thinking, doing different jobs

Now from the get-go we assume there will be significant costs and harms of anything new, which was not the norm in my parent's generation

The astronomical volume of money and greed flowing through this frontier overwhelmed and disguised whatever value it may have had

The sweet elegance of blockchain enables decentralization, which is a perpetually powerful force. This tech just has to be matched up to the tasks — currently not visible — where it is worth paying the huge cost that decentralization entails. That is a big ask, but taking the long-view, this moment may not be a failure

My generic career advice for young people is that if at all possible, you should aim to work on something that no one has a word for. Spend your energies where we don’t have a name for what you are doing, where it takes a while to explain to your mother what it is you do. When you are ahead of language, that means you are in a spot where it is more likely you are working on things that only you can do. It also means you won’t have much competition.

Your 20s are the perfect time to do a few things that are unusual, weird, bold, risky, unexplainable, crazy, unprofitable, and looks nothing like “success.” The less this time looks like success, the better it will be as a foundation

what stretches ahead is a banal ending that refuses to end: the slow violence of capitalism and climate change, a future of could-haves and should-haves void of capital-M meaning.

A core reason behind this genre’s popular success lies in the fact that it lacks the cloying, naïve quality so often associated with positivity. While this partially stems from the aesthetic and language employed—which, thanks to its poetic tenor, internet avant-garde style, and general high-low approach, reads as more online-experimental for those in-the-know and less cheesy iFunny reposts for Boomers—these would matter little if it weren’t for the honest realism that underpins this trend’s optimism

Unlike the deluded optimism espoused by politicians, technologists, and millionaires—which views progress as linear or believes that technology will save us from ourselves or thinks that watching celebrities sing will solve crisis—this trend, like the pessimists it responds to, recognizes that there seems to be no turning back from the precipice.

The genre positions the exercise and resilience of the “Indomitable Human Spirit” at the scale of a single life at the center of its philosophical optimism—not our ability to save the future, but rather our willingness to try and endure with grace.

Social networking is much more than just a dominant discourse. We need to go beyond text and images and include its software, interfaces, and networks that depend on a technical infrastructure consisting of offices and their consultants and cleaners, cables and data centers, working in close concert with the movements and habits of the connected billions. Academic internet studies circles have shifted their attention from utopian promises, impulses, and critiques to “mapping” the network’s impact. From digital humanities to data science we see a shift in network-oriented inquiry from Whether and Why, What and Who, to (merely) How. From a sociality of causes to a sociality of net effects. A new generation of humanistic researchers is lured into the “big data” trap, and kept busy capturing user behavior whilst producing seductive eye candy for an image-hungry audience (and vice versa).

We need to politicize the New Electricity, the privately owned utilities of our century, before they disappear into the background.

What remains particularly unexplained is the apparent paradox between the hyper-individualized subject and the herd mentality of the social.

Before we enter the social media sphere, everyone first fills out a profile and choses a username and password in order to create an account. Minutes later, you’re part of the game and you start sharing, creating, playing, as if it has always been like that. The profile is the a priori part and the profiling and targeted advertising cannot operate without it. The platforms present themselves as self-evident. They just are—facilitating our feature-rich lives. Everyone that counts is there. It is through the gate of the profile that we become its subject.

We pull in updates, 24/7, in a real-time global economy of interdependencies, having been taught to read news feeds as interpersonal indicators of the planetary condition

Treating social media as ideology means observing how it binds together media, culture, and identity into an ever-growing cultural performance (and related “cultural studies”) of gender, lifestyle, fashion, brands, celebrity, and news from radio, television, magazines, and the web—all of this imbricated with the entrepreneurial values of venture capital and start-up culture, with their underside of declining livelihoods and growing inequality.

Software, or perhaps more precisely operating systems, offer us an imaginary relationship to our hardware: they do not represent transistors but rather desktops and recycling bins. Software produces users. Without operating system (OS) there would be no access to hardware; without OS no actions, no practices, and thus no user. Each OS, through its advertisements, interpellates a “user”: calls it and offers it a name or image with which to identify. We could say that social media performs the same function, and is even more powerful.

In the age of social media we seem to confess less what we think. It’s considered too risky, too private. We share what we do, and see, in a staged manner. Yes, we share judgments and opinions, but no thoughts. Our Self is too busy for that, always on the move, flexible, open, sporty, sexy, and always ready to connect and express.

Platforms are not stages; they bring together and synthesize (multimedia) data, yes, but what is lacking here is the (curatorial) element of human labor. That’s why there is no media in social media. The platforms operate because of their software, automated procedures, algorithms, and filters, not because of their large staff of editors and designers. Their lack of employees is what makes current debates in terms of racism, anti-Semitism, and jihadism so timely, as social media platforms are currently forced by politicians to employ editors who will have to do the all-too-human monitoring work (filtering out ancient ideologies that refuse to disappear).