6. The
Competition
Us
• Thousands of engineers
• Can hire all over the globe
• Often Greenfield product
and/or systems
• Lots of experience at web
scale
• Existing infrastructure to
leverage
• ~150 engineers, Berlin-
only
• Every recording label we
signed came with
contractual obligations
• Fiver years old legacy
Rails application running
Rails 2
• Lots of smart full stack
engineers on their first job
• No infrastructure—couldn't
use cloud because of EU
law
17. not the topic of
today’s talk, but just
ask app-platform,
or…
24. Some companies
Some other
companies
• Adopt the new
architecture without
any problem
• Immediately see an
increase in velocity
• Might keep the
monolith “forever" but
it isn’t part of the
critical path anymore
• Spend more time in
infrastructure than
delivering value to the
business due to excess
services
• Any meaningful feature
requires changing a
boatload of services
owned by different
teams
• Can’t make people stop
adding new things to
the monolith
28. Firms exist when the transaction
cost of doing something within the
fi
rm, even with all its overhead, is
lower than than cost of doing
things through a marketplace of
free agents.
29. “[this works well until] the costs of
organizing an extra transaction
within the
fi
rm become equal to the
costs of carrying out the same
transaction by means of an
exchange on the open market or
the costs of organizing another
fi
rm"
42. "For example, McDonald's can produce
both hamburgers and French fries at a
lower average expense than what it would
cost two separate
fi
rms to produce each of
the goods separately. This is because
McDonald's hamburgers and French fries
are able to share the use of food storage,
preparation facilities and so forth during
production."