Live data from Hacker News

Has the cost of building software dropped 90%?

martinalderson.com

101–110 of 744 posts

Re: Has the cost of building software dropped 90%?

#102

Where are the billions of dollars spent on GPUs and new data centers accounted for in this estimation?

Ya completely agree, these companies will eventually push these costs to the consumer, might be in 1-2yrs, but it will eventually happen and though regulatory capture make it harder and harder to run local AI models because of “security” reasons.

Re: Has the cost of building software dropped 90%?

#103

It's not just about "building" ... who is going to maintain all this new sub-par code pushed to production every day? Who is going to patch all bugs, edge cases and security vulnerabilities?

The theory goes very simple, you tell the agent to patch the bug. Now the practice though...

Re: Has the cost of building software dropped 90%?

#104
Perhaps the cost will drop over time, but it will be because writing code is becoming more accessible. It's not just because of AI, but the natural progress of education and literacy on the topic that would have happened anyway.

What I see are salaries stagnating and opportunity for new niche roles or roles being redefined to have more technical responsibility. Is this not the future we all expected before AI hype anyway? People need to relax and refocus on what matters.

Re: Has the cost of building software dropped 90%?

#105
> I've had Claude Code write an entire unit/integration test suite in a few hours (300+ tests)

I'd love to see someone do this, or a similar task, live on stream. I always feel like an idiot when I read things like this because despite using Claude Code a lot I've never been able to get anything of that magnitude out of it that wasn't slop/completely unusable, to the point where I started to question if I hadn't been faster writing everything by hand.

Claiming that software is now 90% cheaper feels absurd to me and I'd love to understand better where this completely different worldview comes from. Am I using the tools incorrectly? Different domains/languages/ecosystems?

Re: Has the cost of building software dropped 90%?

#106
post #35

Had the cost of building custom software dropped 90%, we would be seeing a flurry of low-cost, decent-quality SaaS offering all over the marketplace, possibly undercutting some established players. From where I sit, right now, this does not seem to be the case. This is as if writing down the code is not the biggest problem, or the biggest time sink, of building software.

It has dropped by maybe MORE than 90%. My sons school recently asked me to build some tools for them -- I did this over a decade ago for them, for free. I did it again using AI tools (different problem though) and I had it mostly done in 30 minutes (after I got the credentials set up properly -- that took up more time than the main coding part). This was probably several days of work for me in the past.

But in the past, you knew the codebase very well, and it was trivial to implement a fix and upgrade the software. Can the same be done with LLMs ? Well from what I see, it depends on your luck. But if the LLMs can't help you, then you gotta read the whole codebase that you've never read before and you quickly lose the initial benefits. I don't doubt someday we'll get there though.

Re: Has the cost of building software dropped 90%?

#107
post #73

Earlier quoted context omitted.

It is happening though internally in businesses I've worked with. A few of them are starting to replace SaaS tools with custom built internal tooling. I suspect this pattern is happening everywhere to a varying level. Often these SaaS tools are expensive, aren't actually that complicated (or if they are complicated, the bit they need isn't) and have limitations. For example, a company I know recently got told their v…

> It is happening though internally in businesses I've worked with How many samples do you have? Which industries are they from? Which SaaS products were they using, exactly and which features? > ...a company I know recently got told their v1 API they relied on on some back office SaaS tool was being deprecated. V2 of the API didn't have the same features ... dev spends a week or two rebuilding that tool Was that Saa…

I helped a company that is build averse move off of Fivetran to Debezium and some of their own internal tooling for the same workload they are paying 40k less a month (yeah they just raised their prices again).

Now, that's not exactly the same thing, but their paucity of skills made them terrified to do something like this before, they had little confidence they could pull it off and their exec team would just scoff and tell them to work on other revenue generating activities.

Now the confidence of Claude is hard to shake off of them which is not exactly the way I wanted the pendulum to swing, but its almost 500k yearly back in their pockets.

Re: Has the cost of building software dropped 90%?

#108

Earlier quoted context omitted.

I read these sort of comments every so often and I do not understand them. You are in a sea of people telling you that they are developing software much quicker which ticks the required boxes. I understand that for some reason this isn't the case for your work flow, but obviously it has a lot more value for others. If you are a chairmaker and everyone gains access to a machine that can spit out all the chair componen…

> You are in a sea of people telling you that they are developing software much quicker which ticks the required boxes But that's exactly not the case. Everyone is wondering what tf this is supposed to be for. People are vehemently against this tech, and yet it gets shoved down our throats although it's prohibitively expensive. Coding should be among the easiest problems to tackle, yet none of the big models can writ…

They can actually - I thought they couldn’t , but the latest ones can, much to my surprise.

I changed my mind after playing with cursor 2 ( cursor 1 had lasted all of 10 mins), which actually wrote a full blown app with documentation, tests , coverage, ci/cd, etc. I was able to have it find a bug I encountered when using the app - it literally ran the code, inserted extra logs, grepped the logs , found the bug and fixed it.

Re: Has the cost of building software dropped 90%?

#109
I don't really build software any more and have moved into other parts of the business. But I'm still a huge user of software and I'd just echo all the other comments asking if it's so easy to get all these great tools built and shipped, where are they? I can see that YouTube is flooded with auto-generated content. I can see that blogspam has skyrocketed beyond belief. I can see that the number of phishing texts and voicemails I get every day has gone through the roof. I don't see any flood of new CNCF incubating projects. I don't see that holy grail entire OS comparable to Linux but written in Rust. I don't see the other holy grail new web browser that can compete with Firefox, Chrome, and Safari. It's possible people are shipping more of the stripped down Jira clones designed for a team of ten that gets 60 customers and stops receiving updates after 2 years but that's not the kind of software that would be visible to me.

If you're replacing spreadsheets with a single-purpose web UI with proper access control and concurrent editing that doesn't need Sharepoint or Google Workspaces, fine, but if you're telling me that's going to revolutionize the entire industry and economy and justify trillions of dollars in new data centers, I don't think so. I think you need to actually compete with Sharepoint and Google Workspaces. Supposedly, Google and Microsoft claim to be using LLMs internally more than ever, but they're publicly traded companies. If it's having some huge impact, surely we'll see their margins skyrocket when they have no more labor costs, right?

Re: Has the cost of building software dropped 90%?

#110

If you’re quicker then competition heats up management wants more done, efficiencies are soon forgotten and new expectations and baselines set.

Sure but that's the good of it. Lower labor cost = more productivity. The customer wins in the end because the equivalent product is cheaper or a better product costs the same. Businesses and employees still have to compete against each other so things won't get easier for them in the long term.

Except this is capitalism, so any improvements will go disproportionately to the owners. This narrative of improvements for customers has been repeated for decades and it keeps being wrong.

More stock buybacks and subscriptions!

Post reply on HN