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mbgerringtoday at 4:18 PM9 repliesview on HN

I wonder how long it will take the software industry to re-learn the 2010s lesson, that basing your entire business on (and in this case, firing half of your employees and replacing them with) another company’s API is a bad business decision


Replies

binyutoday at 4:30 PM

Frontier models being in the hands of a handful companies does not help either. Let's hope that the open weight movement changes that soon.

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cortesofttoday at 4:39 PM

What makes you say it is a bad business decision? It seems to be a fine decision to make for things like AWS, since when it goes down, a ton of websites go down and no one blames the site.

There is no way to know whether it is a good or bad business decision just because they can go down when a third party goes down. For example, if you save $50 million a year by firing half your employees and replacing them with AI, but you lose $10 million a year because your site goes down when Claude goes down, then you made a great business decision.

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ravenstinetoday at 6:20 PM

Corporate leaders don't learn lessons. They follow trends, chase growth, reduce the perception of risk, diffuse blame, get their business acquired, and exit with money bags in both hands. No learning from experience necessary.

dilyevskytoday at 5:44 PM

Lots of companies did that moving to cloud in 10s and it was generally a positive

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nunodonatotoday at 4:30 PM

we have a big dependency on AI, both for developers (can survive without it, mostly habits) and internal workflows (very hard to go without it). So we decided to unplug from cloud AI, rent our own GPU and use an open model for both scenarios. We have been very happy with it so far, 60% cheaper and around 50% faster

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AlfredBarnestoday at 4:29 PM

Is it important to be that self reliant? I wasn't in the workforce then, so I assume if you have an outsourced system with 99% reliability it would be an acceptable risk. Not sure if any AI system will reach that level, but for potential gains it could be worth it.

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santoshalpertoday at 4:26 PM

I am not sure how many people learned it the first time. To be fair, it's really hard to build a business without major dependencies. The key is to assume they will fail and have alternatives available.

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altern8today at 7:33 PM

Sorry, but what happened in 2010..?