This document discusses how software is transforming industries and creating a growing scarcity of software developers. It notes that software is becoming a general purpose technology on par with electricity or the written word. As software improves production, enhances products, and eventually "eats" entire industries, businesses must leverage software to avoid being marginalized. However, there is a growing shortage of software developers that could cost the global economy trillions. Both businesses and individual developers must find ways to leverage software skills amid this scarcity.
3. Software is Eating the World
● Marc Andresseen, WSJ, August 2011
● “Eating the World”: a general-purpose technology impacting the world in a deeply
transformative way
○ electricity
○ steam power
○ precision clocks
○ written language
○ token currencies
○ iron metallurgy
○ agriculture
○ software
13. Stages of “Eating” an Industry (Auto Industry)
1. Software Improves Production
Supply Chain and Office Automation
2. Software Improves the Product
Tire Pressure Monitors
3. Software Enhances the Product
Parking Computers
4. Software Eats the Product
Driverless Cars
14. Software-Eating Trends
● Democratization: Software is eating gatekeepers
Is your business a gatekeeper?
● Aristocratization: Software is eating jobs and businesses
○ Dukes: Apple, Alphabet (Google), Amazon, Facebook, Microsoft, etc
○ Knights: Tomorrow’s Startups
○ Land-Owning Gentry Developer-Employing Gentry
■ Mainstream Business
■ Workers Empowered by Software
○ Serfs: Workers Displaced by Software
15. Developeronomics
“The one absolutely solid place to store your capital today — if you know how to do it
– is in software developers’ wallets.” -- Venkatesh Rao
Businesses that refuse to recognize the leverage provided by software development will
be marginalized and eventually eaten.
16. Scarcity
● Now: 559,321 open software development jobs
○ Economic Cost: $165 billion to $2.3 trillion
● By 2020: one million open software development jobs
○ Economic Cost: $294 billion to $4 trillion
17. Software Leverage For Business
1. How do we place our deep domain expertise on the effort arm of a software lever?
2. How do we keep that lever from breaking?
“Bill Ford said recently that when he was growing up he used to worry about making
more cars. Now he worries—what if we only made more cars? Just making more cars is
not our future.” -- Venkatesh Prasad, senior technical leader at Ford
18. Software Leverage For Developer
1. How can I become a 10Xer?
2. How can I avoid becoming a commodity?
“Nobody likes being a commodity in a meat market, even as a highly valued 10x prime
cut.” -- Venkatesh Rao
21. Sources
● Why Software Is Eating The World
● A New Soft Technology
● The Rise of Developeronomics
● What is a 10Xer?
● Every Company is a Software Company