1/ Feedback cycles are getting shorter & shorter
2008 recession is how people think about the next recession. But 2008 was a different time, it was a time when the world was not hyper connected. When information took time to reach places and it took time for people to react to that information. Meaning the feedback cycle was longer.
Today we live in a world where feedback cycles are short, way shorter than it used to be. Any information will reach remote corners in minutes and you will see reactions to that information in hours.
Entire meme stock phenomenon is an outcome of this shorter feedback cycle.
This is a fundamentally new world. So in this world expecting a recession to be similar to the 2008 recession doesn’t make any sense.
My take is recessions will be SHORTER, SECTOR SPECIFIC and NARROW.
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2/ Twitter’s Move to On-Premise
Twitter claimed that it reduced its cloud costs by 60%. And these tweets sparked a discussion if more companies will move to on-premises.
Short answer is NO.
Firstly its unlikely that Twitter moved of the cloud, instead its more likely that they optimized cloud costs while moving some workloads to on-premises.
Why this will not be a norm?
It’s hard to find a team that can do this.
On-prem is not elastic, you cannot scale up and down as you wish.
Most of the savings in these cases come from optimizing cloud topologies it self.
3/ Search funds
Search funds allow entrepreneurs to raise funds to acquire a company. I spoke to Jon Staenberg who is investing in Search funds. Until this conversation I wasn’t aware that Search Funds are the best performing assets classes. If you are interested in learning about new asset classes, this conversation is a must for you. Check out our full conversation below.
#63 Jon Staenberg: Investing in Startups, Venture Funds & Search Funds