alt Hacker NewsFor a while (2018-2022) it was hot to buy up software companies that dominated a single niche and jack up prices. The bet was that since software is such a 0-1 business that they would have great moats and have strong pricing power. My father-in-law is blind and used to use JAWS until it got bought up by a private equity firm (Vispero) which tried to dominate the software accessibility market and jacked up the prices to annual subscriptions. He's a electrical engineer so he was comfortable switching to free software NVDA, but a lot of people paid up.
Now with LLM's that business model is in shambles and the finance side of it is less attractive with interest rates so high. I suspect that this is actually driving the software engineer hiring slow-down, because these companies were actually doing most of the employing of software engineers, much more than the big tech companies.
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I was thinking we should have our own internal saas-pocalypse where I work, or at least threaten one to our vendors.
It used to be that vendors could tie their cost to the value they provide, but now their cost is more correlated to the token spend to reverse engineer and re-implement them (using appropriate clean room controls etc). If their cost goes to far above the AI-driven re-write, they're more likely to get jettisoned (absent some other moat not included purely in the technology).
I'm sure we can all think of products that charge a fair whack in license fees, but would not be massively difficult to re-implement (or at least for the subset of features actually used).
As I understand it the situation is much worse than that, the existing debt is floating rate so in some situations can put previously sustainable companies into the red. This of course also affects their ability to refinance so it can spiral from there unless they take drastic measures (which still might not be enough).
2018-2022 was also when interest rates were at historical lows so companies were placing 'big bets' with less-but-not-negligible risks. Same was true for hiring too - remote work + lots of liquidity meant a massive hiring spree that we're now, with our 5x higher interest rates, very much in the comedown for (and which many leaders pin on 'AI-assisted work' and not on their really rash and stupid bets not panning out).
> I suspect that this is actually driving the software engineer hiring slow-down
Are we in a slow-down anymore? Anecdotally I feel things were rough Dec '25 - June '26, but ever since August I've had more interview requests in my inbox than I can remember in my 10+ year career.
I'm not a SWE, (I'm a data engineer) but this jives with what I saw while looking for work. I'm not a particularly good DE, so I was out there for 18 months. There were still plenty of listings but not many of them were in "tech" companies in the traditional sense. Part of this was leaving a tech hub for what is very much not one, but the biggest issue that I found in landing work was that I was now competing for relatively boring $100k+ jobs with guys who were working $200k+ jobs in 2020 - 2023. The 3 - 6 "tech" orgs that used to employ these folks regionally just aren't really hiring that much.