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Speaker unverified: belief

13 Dec 2024 Latent Space Windsurf: The Enterprise AI IDE - with Varun and Anshul of Codeium AI

“Yeah, maybe, Alessio, one thing that I think about a lot, because I do think about this, the Perseat, anything, all of this stuff, I think about a good deal.”

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Speaker unverified
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Not verified from this transcript
Claim type
belief
Recorded
13 Dec 2024
Publisher
Latent Space

Transcript context

…I've talked to a lot of CTOs in, like, the Fortune 100 where most of the engineers they have, they don't really do much anyway. The problem is not that the developer costs 200𝐾𝑎𝑛𝑑𝑦𝑜𝑢′𝑟𝑒𝑠𝑎𝑣𝑖𝑛𝑔200Kandyou′resaving8K. It's like, that developer should not be paid 200𝐾.𝐵𝑢𝑡𝑡ℎ𝑎𝑡′𝑠𝑘𝑖𝑛𝑑𝑜𝑓,𝑙𝑖𝑘𝑒,𝑡ℎ𝑒𝑏𝑎𝑠𝑒𝑝𝑟𝑖𝑐𝑒,𝑦𝑜𝑢𝑘𝑛𝑜𝑤?𝐵𝑢𝑡𝑡ℎ𝑒𝑛𝑦𝑜𝑢ℎ𝑎𝑣𝑒𝑑𝑒𝑣𝑒𝑙𝑜𝑝𝑒𝑟𝑠𝑔𝑒𝑡𝑡𝑖𝑛𝑔𝑝𝑎𝑖𝑑200K.Butthat′skindof,like,thebaseprice,youknow?Butthenyouhavedevelopersgettingpaid200K that should be paid 500𝐾.𝑆𝑜𝑖𝑡′𝑠𝑎𝑙𝑚𝑜𝑠𝑡𝑙𝑖𝑘𝑒𝑦𝑜𝑢′𝑟𝑒𝑎𝑣𝑒𝑟𝑎𝑔𝑖𝑛𝑔𝑜𝑢𝑡𝑡ℎ𝑒𝑝𝑟𝑖𝑐𝑒𝑏𝑒𝑐𝑎𝑢𝑠𝑒𝑚𝑜𝑠𝑡𝑝𝑒𝑜𝑝𝑙𝑒𝑎𝑟𝑒𝑎𝑐𝑡𝑢𝑎𝑙𝑙𝑦𝑛𝑜𝑡𝑡ℎ𝑎𝑡𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑒𝑎𝑛𝑦𝑤𝑎𝑦.𝑆𝑜𝑖𝑓𝑦𝑜𝑢𝑚𝑎𝑘𝑒𝑡ℎ𝑒𝑚20500K.Soit′salmostlikeyou′reaveragingoutthepricebecausemostpeopleareactuallynotthatproductiveanyway.Soifyoumakethem2050K, you know? And it's like the bottom of the end gets kind of, like, squeezed out and then the top end gets squeezed up. Yeah, maybe, Alessio, one thing that I think about a lot, because I do think about this, the Perseat, anything, all of this stuff, I think about a good deal. Let's take a product like Office 365. I will say a lawyer at Codeium uses Microsoft Word way more than I do. I'm still footing the same bill. But the amount of value that he's driving from Office 365 is probably, you know, tens of thousands of dollars. By the way, everyone, you know, Google Docs, great product. Microsoft Word is a crazy product. It made it so that the moment you review anything in Microsoft Word, the only way you can review it is with other people in Microsoft Word. It's like this virus that penetrates everything. And it's not only penetrates it within the company, it penetrates it across company too. The amount of value it's driving is way higher for him. So for these kinds of products, there's always going to be for these kinds of products, this variance between who gets value from these products, right? And you're right. It's almost like a blended because you're actually totally right. Probably this company should be paying that one developer maybe like four times as much. But in weird ways, software is like this team activity enough that there's a bunch of blended outcomes. But hey, like 20% of the four times and there are four people is still going to cover the cost. Right? Across the four individuals, right? And that's how roughly these products kind of get priced out. I mean, more than about pricing, this is about like the future of like the software engineer. Like we could be very wrong also. Yeah. I think nobody knows.…

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