I’ve always had a hard time understanding the value proposition in the same way I don’t understand the value proposition of e.g. AWS Rekognition. Paying per use certainly doesn’t make sense, because it has to be qualified by the accuracy you get per use. And there’s no serious way to understand the accuracy you get per use (on your specific unusual distribution of queries) without employing the expensive ML / stats e…
You are absolutely factually correct in your analysis, but you are completely missing how business works. Fundamentally, there is value to most businesses in being able to just buy a decent solution to a non core competency. That’s where Algolia and AWS and basically all service companies come in... a medium scale clothing manufacturer with a booming e-commerce site may well know they have no clue how to do search, a…
To even know if you’re buying a decent solution from Algolia or not, you’d already have to hire pretty much all the same staff you’d have to hire to more cost-effectively build it in-house.
I think the fundamental myth, just like with Rekognition, is that if you ship off your data and the third party trains some model (most likely fine-tuning a base model), then you’re done, problem solved.
Even for businesses where search is not a core part of their direct value proposition to customers this is flagrantly untrue.