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>Unlike other kinds of businesses, these companies face very little pressure to control costs

This is not really true anymore and is exactly why Google and Amazon are doing big layoffs. Money isn't free anymore. The "just grow at all costs" couldn't last forever and it's finally coming to an end

Investors are specifically expecting profitability now and not just growth of customers. The end of what you're talking about is precisely what is happening now



At some margin, this is right of course, and rising rates move us closer to that margin.

My point is this behavior is better explained by the actor’s belief in something like the following proposition:

“The present value of the opex avoidance is dwarfed by the present value of a leaner org’s ability to focus, ship and execute.”




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