Dev Tools Honeytrap: Why We Can't Stop Building Tools Nobody Buys
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I built Cronitor in 2014 not because I liked making dev tools or was even particularly good at it, but because in my day job at Zillow my team had a lot of problems with silently-failing cron jobs. I had friends who were developers at other companies so I had the ability to validate this problem with other people in my network.
With any business it’s very important to solve a real problem. Steve Jobs called this approach starting with the customer and working backwards to the technology. So, you build what you know you need, with the belief that you are not as different from your peers as you might think. In contrast we have a lot of people starting with LLM technology and trying to work backwards to customers. I think that’s the real honeytrap.
Don't most people say that about their niche of the tech industry? Healthtech. Online dating. Edtech. Game dev. You name it.
It’s like opening a restaurant that only serves other chefs. Not easy!
Clearly false.
Google’s budget for software and services I’m sure is in the hundreds of millions if not billions of dollars. So again, obviously false.
AWS is "just dev tools" and it's one of the most profitable businesses in the world.
https://www.failory.com/startups/developer-tools-unicorns (unrelated, but thatgamecompany as dev tools? that's a first)
What I've found motivates this phenomenon is the fact that many companies have a strong aversion to adding any technology of any kind to their tech stack, regardless of how simple. Better to pay an external provider to run it for you, the thinking goes.
So naturally there is a gigantic market for cloud hosting of all kinds of software, even software that is very rudimentary to self-host.
Of course, there are other factors to consider, but it's just a tiny anecdote that confirms what the author said: Companies don't like to pay for dev tools.
They've certainly pivoted their product in various ways, as any business does - my point was not to suggest that cloud devtools get free money and don't have to worry about the natural challenges of B2B product development. My point was just that, completely nonviable businesses can at least become viable by selling the cloud.
Interestingly, language diversity seems driven by school curricula, which becomes comfort which becomes hiring practice, the change driven by academic boredom with a given language.
I don't think this is unique at all to software tools and is a general principle.
Rosen had a paper in 1981 talking about "The Economics of Superstars" [0]. I don't claim to have deep knowledge but the idea is that if an individual has limited resources (money, attention, etc.) and wants to ensure the maximum gain from their expenditure, then allocating resources to the superstar is a safer bet. This means that superstars get proportionally larger resources than what they might be valued at.
For example, if 120 consumer has $5 to spend on a song ($600 total), each consumer on an individual level might allocate their $5 on the known good superstar song. The superstar song might only be 2x better than the next best thing, so one might expect that the superstar song might, at most, get $400 of the total, but because of the superstar effect, the superstar song gets all $600.
I just watched an interview with Torvalds about Git. There were a lot of reasons why Git was so quickly adopted, not the least of which was functionality and how it leveraged a changing technology landscape, but a major factor was almost surely Torvalds celebrity status and blessing.
[0] https://pdodds.w3.uvm.edu/files/papers/others/1981/rosen1981...