A very useful thing to know, if you sell things that could be used by a company that would have need for a hundred pretty nice workstation GPUs, is how this calculation gets made in practice:
Technologist: Residual value is $4k contingent on sale.
Manager: Do we have a buyer on the approved vendor list who will do The Usual with less than one phone call required?
Technologist: No.
Manager: Trash them.
Technologist: Why?!?
Manager: We’d only spend hundreds of dollars of staff time, I.e. yours, if this was a simple matter of boxing them up and giving them to vendor. That might or might not be worth it given typical ROI on your time given current workload/priorities. However.
Technologist: However?
Manager: However, it will cost us many, many thousands of dollars of staff time to get a new vendor onboard here.
Technologist: Vendor Qualification is that slow?!?
Manager: Only the tip of the iceberg. How much do you think Accounting needs to be involved?
Technologist: Accounting is basically never involved when I buy things.
Manager: Planning on buying anything?
Technologist: Or when we sell them… to a customer… ffffffffffuuuu.
Manager: Yeah ask about depreciation schedules sometime if they’re internal; external runs a meter.
Technologist: Trash then?
Manager: Trash then.
Technologist: Can I have one?
Manager: Formally no for similar reasons; informally most of the time in the tech industry I will simply pretend to have not heard this question.
You are selling your software to Manager, not to Technologist, even if Technologist will be the primary pusher of buttons.
There do exist highly specialized ecosystems for electronic waste, and the tech industry does plug into them, but for predictable reasons it does not create those organizational pathways for one-offs which are far, far below its care floor.

Different story for e.g. server farms.
“How does this happen elsewhere?”

Something I ran once bought someone a laptop for work. When we shut down, not having need for a used laptop and assessing the residual value as zero due to above reasoning, I directed us to sell it to them for a dollar.
That’s more paperwork oriented than most people would be but wellll have you met me?

(The rationale is that if you straight up give your employee a general purpose computing machine that is likely taxable compensation but if you sell them e-waste as a convenience to you…)
“Are you sure that is OK?”

I will make the obligatory “Not an accountant and not your accountant” disclaimer but I stand ready to answer the relevant agency’s questions about the transaction if they ever have any.

It’s strictly a better outcome than binning the laptop.

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More from @patio11

29 Sep
Quoted for endorsement.

An interesting level to aim at is “What would I teach new employees working here on this.”
That’s probably not “Rails create” but very well could be “Here’s how we deploy on Rails and why we made these choices.”

Or in banking not “Here’s what net interest is” but “Let’s talk about funding sources available to banks and the relative costs and limitations of them.”
Hmm *writes note to self.*
Read 6 tweets
29 Sep
I remain surprised by how much better my life got by the really simple expedient of making batteries a pervasively available utility, even though I'm not often away from an electrical outlet during coronavirus compared to more typical life pattern.

c.f. chargespot.jp
The dominant use case for me is "Drop daughter off at school, would really like to go to a cafe and enjoy breakfast but cannot justify it if cell phone is off, see I only have 4% and think about going home... pop into konbini, rent battery for ~$3, get to enjoy coffee."
And it's such a good business for all parties that the local konbini moved the station, which both handles payments (with the app on your phone) and fulfilment of the battery, away from the register because frequent transactions were blocking foot traffic to the checkout.
Read 8 tweets
29 Sep
Received wisdom in the community used to be that it takes about 18 months to get to this point, but 6-9 does seem more reasonable these days.

Markets are better, tech stacks are simpler (really!), founders are more skilled on working on what matters, etc.
Also there is culturally more willingness to grind a bit on marketing and sales where a lot of us back in the day reaaaaaally wanted to make a software vending machines, put it on Internet, and never have to talk to anybody.
An interesting thing from the crystal ball: a lot of what has historically made this form of software entrepreneurship attractive is that most founders of it live somewhere where they are the best game in town for a software dev.

Will be interesting how remote work changes that.
Read 6 tweets
29 Sep
Also seeing this, and (while not to be Mr. I Told You So) it's been pretty obvious it was eventually going to happen, for years.
One of many articulations of the thought, though I wouldn't use the word "bubble" these days; in core tech (ex-crypto) degree of investment seems extremely rationale to me.
Software takes money to build, and that money has historically been raised by professional money people.

Software makes software people money.

It is very not obvious that professional money people add value other than the money, and to the extent they don't, why have them.
Read 13 tweets
28 Sep
(Not wholly descriptive of things I’ve seen in my career but really important to understand broad strokes of how large software-oriented orgs operate compared to small shops and large non-software orgs.)
(And while there are lots of differences between and within companies it is, unsurprisingly, trivially true that e.g. eng team randomly picked at Google is more similar to one at Amazon than a randomly selected writer of code at Washington University or the IRS.)
Read 8 tweets
27 Sep
So Bitfinex/Tether apparently lost about $23 million to an operational error in setting Ethereum fees, which would be terrifying due to low equity cushion if regulated.

OTOH, most crypto folks believe that Tether effectively has backup up to full equity value of Bitfinex/Tether.
In the more formal financial world there is the so-called “source of strength” mandate where if you own a bank your holding company/etc is required to recapitalize a failing regulated subsidiary even if, considered from its own perspective, it would strongly prefer not to.
The argument in crypto is “I mean sure they’re not required to recapitalize Tether but everyone knows they would; it would torch their rep if they didn’t.”

To which one could make observations about the bail-in that happened.
Read 5 tweets

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