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The potential gains from cost saving is always capped at total cost. The potential gains from increasing revenue are (typically) much larger.


Also cost savings has a hard, well known upper bound but revenue growth is speculative with many opportunities for pleasant fantasy. Business leaders love the idea of being the visionary who takes a big gamble and makes it work.

Facebook is an example of where that breaks down: there isn’t an easy way to grow that much larger so they would likely see greater return from cost savings than they are likely to make from VR, but after a couple decades of thinking of themselves as this incredibly innovative tech company it’s hard to accept that they’re stable as an ad company.


There's also cost savings that are numbers shuffling on a spreadsheet and then there's cost savings that are actually less money leaving the corporate accounts.




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