Odd Lots Why Corporate America Still Runs on Ancient Software That Breaks
Jan 26, 2023
In this discussion, Patrick McKenzie, a former Stripe engineer and writer of the Bits About Money newsletter, dives deep into the software struggles plaguing corporate America. He explains how legacy systems bring chaos, like during Southwest Airlines’ holiday fiasco. The conversation explores the risks of outsourcing software development and the critical need for in-house talent. McKenzie also highlights the software divide between traditional firms and tech companies, emphasizing the necessity for user-friendly solutions in a rapidly evolving tech landscape.
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Corporate vs. Consumer Software
- Corporate software often lags behind consumer software in terms of user experience and reliability.
- This is due to accumulated technical debt, mergers and acquisitions, and a culture of cost-cutting over innovation.
Banks and Legacy Systems
- Tracy Allaway discusses how banks, having grown through mergers and acquisitions, often have complex, patched-together IT systems.
- These systems reflect the banks' history of absorbing smaller entities with disparate software.
Software Maintenance and Bit Rot
- Software requires ongoing maintenance like airplanes, or it suffers "bit rot."
- Neglecting maintenance due to cost-cutting can lead to critical system failures.