The Next Thing Will Not Be Big

The dawning of a new year is an opportune moment to contemplate what has transpired in the old year, and consider what is likely to happen in the new one.

Today, I’d like to contemplate that contemplation itself.

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The 20th century was an era characterized by rapidly accelerating change in technology and industry, creating shorter and shorter cultural cycles of changes in lifestyles. Thus far, the 21st century seems to be following that trend, at least in its recently concluded first quarter.

The early half of the twentieth century saw the massive disruption caused by electrification, radio, motion pictures, and then television.

In 1971, Intel poured gasoline on that fire by releasing the 4004, a microchip generally recognized as the first general-purpose microprocessor. Popular innovations rapidly followed: the computerized cash register, the personal computer, credit cards, cellular phones, text messaging, the Internet, the web, online games, mass surveillance, app stores, social media.

These innovations have arrived faster than previous generations, but also, they have crossed a crucial threshold: that of the human lifespan.

While the entire second millennium A.D. has been characterized by a gradually accelerating rate of technological and social change — the printing press and the industrial revolution were no slouches, in terms of changing society, and those predate the 20th century — most of those changes had the benefit of unfolding throughout the course of a generation or so.

Which means that any individual person in any given century up to the 20th might remember one major world-altering social shift within their lifetime, not five to ten of them. The diversity of human experience is vast, but most people would not expect that the defining technology of their lifetime was merely the latest in a progression of predictable civilization-shattering marvels.

Along with each of these successive generations of technology, we minted a new generation of industry titans. Westinghouse, Carnegie, Sarnoff, Edison, Ford, Hughes, Gates, Jobs, Zuckerberg, Musk. Not just individual rich people, but entire new classes of rich people that did not exist before. “Radio DJ”, “Movie Star”, “Rock Star”, “Dot Com Founder”, were all new paths to wealth opened (and closed) by specific technologies. While most of these people did come from at least some level of generational wealth, they no longer came from a literal hereditary aristocracy.

To describe this new feeling of constant acceleration, a new phrase was coined: “The Next Big Thing”. In addition to denoting that some Thing was coming and that it would be Big (i.e.: that it would change a lot about our lives), this phrase also carries the strong implication that such a Thing would be a product. Not a development in social relationships or a shift in cultural values, but some new and amazing form of conveying salted meat paste or what-have-you, that would make whatever lucky tinkerer who stumbled into it into a billionaire — along with any friends and family lucky enough to believe in their vision and get in on the ground floor with an investment.

In the latter part of the 20th century, our entire model of capital allocation shifted to account for this widespread belief. No longer were mega-businesses built by bank loans, stock issuances, and reinvestment of profit, the new model was “Venture Capital”. Venture capital is a model of capital allocation explicitly predicated on the idea that carefully considering each bet on a likely-to-succeed business and reducing one’s risk was a waste of time, because the return on the equity from the Next Big Thing would be so disproportionately huge — 10x, 100x, 1000x – that one could afford to make at least 10 bad bets for each good one, and still come out ahead.

The biggest risk was in missing the deal, not in giving a bunch of money to a scam. Thus, value investing and focus on fundamentals have been broadly disregarded in favor of the pursuit of the Next Big Thing.

If Americans of the twentieth century were temporarily embarrassed millionaires, those of the twenty-first are all temporarily embarrassed FAANG CEOs.

The predicament that this tendency leaves us in today is that the world is increasingly run by generations — GenX and Millennials — with the shared experience that the computer industry, either hardware or software, would produce some radical innovation every few years. We assume that to be true.

But all things change, even change itself, and that industry is beginning to slow down. Physically, transistor density is starting to brush up against physical limits. Economically, most people are drowning in more compute power than they know what to do with anyway. Users already have most of what they need from the Internet.

The big new feature in every operating system is a bunch of useless junk nobody really wants and is seeing remarkably little uptake. Social media and smartphones changed the world, true, but… those are both innovations from 2008. They’re just not new any more.

So we are all — collectively, culturally — looking for the Next Big Thing, and we keep not finding it.

It wasn’t 3D printing. It wasn’t crowdfunding. It wasn’t smart watches. It wasn’t VR. It wasn’t the Metaverse, it wasn’t Bitcoin, it wasn’t NFTs¹.

It’s also not AI, but this is why so many people assume that it will be AI. Because it’s got to be something, right? If it’s got to be something then AI is as good a guess as anything else right now.

The fact is, our lifetimes have been an extreme anomaly. Things like the Internet used to come along every thousand years or so, and while we might expect that the pace will stay a bit higher than that, it is not reasonable to expect that something new like “personal computers” or “the Internet”³ will arrive again.

We are not going to get rich by getting in on the ground floor of the next Apple or the next Google because the next Apple and the next Google are Apple and Google. The industry is maturing. Software technology, computer technology, and internet technology are all maturing.

There Will Be Next Things

Research and development is happening in all fields all the time. Amazing new developments quietly and regularly occur in pharmaceuticals and in materials science. But these are not predictable. They do not inhabit the public consciousness until they’ve already happened, and they are rarely so profound and transformative that they change everybody’s life.

There will even be new things in the computer industry, both software and hardware. Foldable phones do address a real problem (I wish the screen were even bigger but I don’t want to carry around such a big device), and would probably be more popular if they got the costs under control. One day somebody’s going to crack the problem of volumetric displays, probably. Some VR product will probably, eventually, hit a more realistic price/performance ratio where the niche will expand at least a little more.

Maybe there will even be something genuinely useful, which is recognizably adjacent to the current “AI” fad, but if it is, it will be some new development that we haven’t seen yet. If current AI technology were sufficient to drive some interesting product, it would already be doing it, not using marketing disguised as science to conceal diminishing returns on current investments.

But They Will Not Be Big

The impulse to find the One Big Thing that will dominate the next five years is a fool’s errand. Incremental gains are diminishing across the board. The markets for time and attention² are largely saturated. There’s no need for another streaming service if 100% of your leisure time is already committed to TikTok, YouTube and Netflix; famously, Netflix has already considered sleep its primary competitor for close to a decade - years before the pandemic.

Those rare tech markets which aren’t saturated are suffering from pedestrian economic problems like wealth inequality, not technological bottlenecks.

For example, the thing preventing the development of a robot that can do your laundry and your dishes without your input is not necessarily that we couldn’t build something like that, but that most households just can’t afford it without wage growth catching up to productivity growth. It doesn’t make sense for anyone to commit to the substantial R&D investment that such a thing would take, if the market doesn’t exist because the average worker isn’t paid enough to afford it on top of all the other tech which is already required to exist in society.

The projected income from the tiny, wealthy sliver of the population who could pay for the hardware, cannot justify an investment in the software past a fake version remotely operated by workers in the global south, only made possible by Internet wage arbitrage, i.e. a more palatable, modern version of indentured servitude.

Even if we were to accept the premise of an actually-“AI” version of this, that is still just a wish that ChatGPT could somehow improve enough behind the scenes to replace that worker, not any substantive investment in a novel, proprietary-to-the-chores-robot software system which could reliably perform specific functions.

What, Then?

The expectation for, and lack of, a “big thing” is a big problem. There are others who could describe its economic, political, and financial dimensions better than I can. So then let me speak to my expertise and my audience: open source software developers.

When I began my own involvement with open source, a big part of the draw for me was participating in a low-cost (to the corporate developer) but high-value (to society at large) positive externality. None of my employers would ever have cared about many of the applications for which Twisted forms a core bit of infrastructure; nor would I have been able to predict those applications’ existence. Yet, it is nice to have contributed to their development, even a little bit.

However, it’s not actually a positive externality if the public at large can’t directly benefit from it.

When real world-changing, disruptive developments are occurring, the bean-counters are not watching positive externalities too closely. As we discovered with many of the other benefits that temporarily accrued to labor in the tech economy, Open Source that is usable by individuals and small companies may have been a ZIRP. If you know you’re gonna make a billion dollars you’re not going to worry about giving away a few hundred thousand here and there.

When gains are smaller and harder to realize, and margins are starting to get squeezed, it’s harder to justify the investment in vaguely good vibes.

But this, itself, is not a call to action. I doubt very much that anyone reading this can do anything about the macroeconomic reality of higher interest rates. The technological reality of “development is happening slower” is inherently something that you can’t change on purpose.

However, what we can do is to be aware of this trend in our own work.

Fight Scale Creep

It seems to me that more and more open source infrastructure projects are tools for hyper-scale application development, only relevant to massive cloud companies. This is just a subjective assessment on my part — I’m not sure what tools even exist today to measure this empirically — but I remember a big part of the open source community when I was younger being things like Inkscape, Themes.Org and Slashdot, not React, Docker Hub and Hacker News.

This is not to say that the hobbyist world no longer exists. There is of course a ton of stuff going on with Raspberry Pi, Home Assistant, OwnCloud, and so on. If anything there’s a bit of a resurgence of self-hosting. But the interests of self-hosters and corporate developers are growing apart; there seems to be far less of a beneficial overflow from corporate infrastructure projects into these enthusiast or prosumer communities.

This is the concrete call to action: if you are employed in any capacity as an open source maintainer, dedicate more energy to medium- or small-scale open source projects.

If your assumption is that you will eventually reach a hyper-scale inflection point, then mimicking Facebook and Netflix is likely to be a good idea. However, if we can all admit to ourselves that we’re not going to achieve a trillion-dollar valuation and a hundred thousand engineer headcount, we can begin to consider ways to make our Next Thing a bit smaller, and to accommodate the world as it is rather than as we wish it would be.

Be Prepared to Scale Down

Here are some design guidelines you might consider, for just about any open source project, particularly infrastructure ones:

1. Don’t assume that your software can sustain an arbitrarily large fixed overhead because “you just pay that cost once” and you’re going to be running a billion instances so it will always amortize; maybe you’re only going to be running ten.

2. Remember that such fixed overhead includes not just CPU, RAM, and filesystem storage, but also the learning curve for developers. Front-loading a massive amount of conceptual complexity to accommodate the problems of hyper-scalers is a common mistake. Try to smooth out these complexities and introduce them only when necessary.

3. Test your code on edge devices. This means supporting Windows and macOS, and even Android and iOS. If you want your tool to help empower individual users, you will need to meet them where they are, which is not on an EC2 instance.

4. This includes considering Desktop Linux as a platform, as opposed to Server Linux as a platform, which (while they certainly have plenty in common) they are also distinct in some details. Consider the highly specific example of secret storage: if you are writing something that intends to live in a cloud environment, and you need to configure it with a secret, you will probably want to provide it via a text file or an environment variable. By contrast, if you want this same code to run on a desktop system, your users will expect you to support the Secret Service. This will likely only require a few lines of code to accommodate, but it is a massive difference to the user experience.

5. Don’t rely on LLMs remaining cheap or free. If you have LLM-related features⁴, make sure that they are sufficiently severable from the rest of your offering that if ChatGPT starts costing $1000 a month, your tool doesn’t break completely. Similarly, do not require that your users have easy access to half a terabyte of VRAM and a rack full of 5090s in order to run a local model.

Even if you were going to scale up to infinity, the ability to scale down and consider smaller deployments means that you can run more comfortably on, for example, a developer’s laptop. So even if you can’t convince your employer that this is where the economy and the future of technology in our lifetimes is going, it can be easy enough to justify this sort of design shift, particularly as individual choices. Make your onboarding cheaper, your development feedback loops tighter, and your systems generally more resilient to economic headwinds.

So, please design your open source libraries, applications, and services to run on smaller devices, with less complexity. It will be worth your time as well as your users’.

But if you can fix the whole wealth inequality thing, do that first.

Acknowledgments

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