David Rosenthal: evaluation

Transcript context

…It worked for Bezos, and it worked for YC, too. Indeed. But if you go watch the talk—which I highly recommend; it's really great—Jeff uses this sort of odd analogy for AWS, where he talks about European beer breweries around the turn of the 20th century. You're like, all right, Jeff, where are you going with this? The point of the analogy he makes is electricity had just been invented. This was this massive boon, enabling technology for consumer products, CPG, like beer. They could now brew vastly more quantities of beer than you could before using electricity. But the first breweries to adopt it, they built their own power generators. They made their own power. That worked fine for a few years, but it was super capital-intensive, required all this operational labor to run the power generators. Then the utility companies came along, and the next generation of breweries, they didn't make their own power. They just rented it from the utility companies, and they ran roughshod over the first generation of breweries to use power, because guess what, whoever makes your electricity has no impact on how your beer tastes. Literally, making it yourself does not make your beer taste better. But it does raise your cost structure.…

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