Quotulatiousness

August 24, 2018

From Software-as-a-Service to emerging Techno-Feudalism

Filed under: Business, Europe, History, Technology — Tags: , , — Nicholas @ 03:00

The shift from selling software to selling software subscriptions was a major sea-change in the technology world. Here’s a bit of historical perspective from The Z Man to explain why this could be a very bad thing indeed for the average user:

Feudalism only works when a small elite controls the source of wealth. Then they can control the exploitation of it. In Europe, as Christianity spread, the Church acquired lands, becoming one of the most powerful forces in society. The warrior elite was exclusively Catholic, thus they had a loyalty to the Pope, as God’s representative on earth. Therefore, the system of controlling wealth not only had a direct financial benefit to the people at the top, it had the blessing of God’s representative, who sat atop the whole system.

That’s something to keep in mind as we see technology evolve into a feudal system, where a small elite controls the resources and grants permission to users. The software oligopolies are now shifting all of their licensing to a subscription model. It’s not just the mobile platforms. Developers of enterprise software for business are adopting the same model. The users have no ownership rights. Instead they are renters, subject to terms and conditions imposed by the developer or platform holder. The user is literally a tenant.

The main reason developers are shifting to this model is that they cannot charge high fees for their software, due to the mass of software on the market. Competition has drive down prices. Further, customers are not inclined to pay high maintenance fees, when they can buy new systems at competitive rates. The solution is stop selling the stuff and start renting it. This fits the oligopoly scheme as it ultimately puts them in control of the developers. Apple and Google are now running protection rackets for developers.

It also means the end of any useful development. Take a look at the situation Stefan Molyneux faces. A band of religious fanatics has declared him a heretic and wants him burned. The Great Church of Technology is now in the process of having him expelled from the internet. As he wrote in a post, he invests 12 years building his business on-line, only to find out he owns none of it. He was always just a tenant farmer, who foolishly invested millions in YouTube. Like a peasant, he is now about to be evicted.

How long before someone like this monster discovers that Google and Apple will no longer allow him to use any apps on his phone? Or maybe he is denied access to his accounting system? How long before his insurer cuts off his business insurance, claiming the threat from homosexual terrorists poses too high of a risk? Federal law prevents the electric company from shutting off his power due to politics, but Federal law used to prevent secret courts and secret warrants. Things change as the people in charge change.

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