Yes, that is what I am talking about.
Technology skills of SV are over-rated, IMO. The strength of SV is the mix of tech oriented labor, capital and business acumen.
There are other places on the planet which have deeper tech labor pools (Ottawa), or more liquid capital (Boston) and stronger business acumen (New York). But not in the same "perfect" combination which makes SV the most ideal place on the planet to start up a tech company. Ottawa scores close to zero when it comes to business acumen, Boston has a cost structure like SV and isn't as technically deep, and for some reason, tech talent tends to leave New York as fast as it possibly can.
Anybody who argues that SV isn't the ideal place to start up a tech startup is nuts. IMHO.
More central to the discussion however, is that there are places on the planet where while the capability might be lower, the reduction in throughput is more than made up for by a reduction in labor rate. It is very very difficult to compete on a total-cost-after-tax basis with Tel Aviv, for example. I know this from first-hand experience.
No doubt about it, the environment in SV confers a tremendous startup advantage. However, once the business matures, the cost structure of SV (labor) is prohibitively high for obtaining maximum economic efficiency. Not surprising that maturing SV companies are undertaking massive outsourcing activities and relocating core functionality, to the dismay of local engineering teams.
This is an emotive subject for many SV engineers. Most of whom think they are above average. Even by SV standards.
But that's another key aspect of SV which makes it tick. Chutzpah!
John.
P.S. I do know where to get hold of at least one world-class OS team that doesn't reside in SV. Pay them 20% less than an SV salary and you can have them, intact, in a matter of days. |
