The steep price of good technology

By | December 10, 2008, 9:30am PST

Summary: What was good for the Netflix customer — a less buggy experience, courtesy of Microsoft’s Silverlight — was bad for the 50 technical specialists laid off when their services were no longer needed.

Netflix says that Silverlight was too good for some technical specialists own good.

If you’ve been in the technology field for long enough, and (hopefully) survived enough rounds of layoffs, by now you’ve probably heard every reason in the book that an organization has had to eliminate jobs: They were bought by another company and there were departmental redundancies. They can get the work done in India/China/[Insert Your Outsourcing Destination Here] for half the price. The recession has affected their bottom line and they need to make across-the-board cuts. They’ve decided to discontinue your project.

[My goodness, that there is a depressing list.]

But today I read a new one: the technology, you see, it is too good. It doesn’t break as much. They don’t need as many techies to maintain it. In short, they may need less of you.

This was the case with Netflix, which announced in a Dec. 7 blog entry that it would be eliminating the positions of 50 technical specialists. The reason? “We just don’t have the technical specialist work for them to do in Customer Service because of the improvements in our streaming player,” said VP of Corporate Communications, Steve Swasey.

Swasey explained that customers watching movies instantly on their PC or Mac might have noticed that their player is easier to install and use since they switched to Microsoft’s Silverlight. Yet what is good for the customer — a less buggy experience — is bad for technical specialists, which Netflix then felt they had too many of.

Thanks a lot, Microsoft! Just kidding… er, sort of.

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Deb Perelman

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Biography

Deb Perelman

Deb Perelman is a journalist in New York City with a focus on tech and the daily grind. Previously she was a reporter for eWEEK, leading the magazine and Web site's coverage of the issue and trends that affect IT workers.

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Good timing
rtk 23rd Dec 2008
http://healthcare.zdnet.com/?p=1628

Proof that doctor shortages aren't a Canadian thing.

Might want to watch how fast you throw out the "liar" accusation.
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This is just another example of how toxic M$ technologies are!
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So as a business owner
BroGnorik 10th Dec 2008
you would rather pay for hundreds of employees to do the work of twenty?

Business is about making money, and if Microsoft products are saving money for Netflix, and providing Netflix customers with a better experience, then it sounds like Microsoft product is working.

And yet you complain, if this was an open source programs, and Netflix laidoff 500 employees, I would bet you would be happy.
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Come on!
stano360 11th Dec 2008
He's got to be joking or he's some Mac fanboy living in his parents basement.
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I would bet/go with the later...nt
TheBottomLineIsAllThatMatters 11th Dec 2008
nt
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Actually...
Wolfie2K3 11th Dec 2008
His nom de plume says it all - LINUX GEEK...
Look at Canada. They are a capitalist country but have socialized healthcare. Guess what?

They've basically run out of physicians. The incentive is not there. Now Canadians stream into the U.S. every day for healthcare.


Socialized programs do not work.


So please keep socialized software out of the U.S., please. We don't want software that is receiving backing from governments around the world and got it's start from the huge U.S. program called Darpa.


We don't want that fungus, or should i say cancer eating away at the U.S. job market and economy. Our children don't want it either.


Ask them. They want Windows or OS X. period.
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yeah, social = bad, screw-u = good
stevenjs 11th Dec 2008
If I were within driving distance I'd be running to Canada for health care.

So you want anti-social software (and health care?), the screw-you-for-a-buck ethos across the board?

Render unto Ceasar the things that are Caesar's.
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If I were within driving distance I'd be running to Canada for health care.

Just hope that if you were driving up to Canada for health care, whatever condition you had wasn't life threatening or serious. I hear the wait for an appointment at one of their socialized facilities tends to be long and painful.

Hence the reason most Canadians are coming SOUTH of the border to see a doctor. The wait is literally killing them...
  • Flagged
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In America, you die in the ambulance waiting for the insurance coverage to be confirmed.

The wait for elective surgury and non-life threatening can be long, but everybody gets to live if at all medically (instead of financially) possible.

The upper class flies all over the world to obtain immediate but incredibly expensive health care, middle class Canadians would consider going to the states for healthcare as much as lower class americans would consider heading to Mexico.
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The socialized healthcare in Canada stinks.


In the U.S. there is no provider of healthcare that verifies insurance before an emergency. If you can point to a case and data to back it up, then feel free.


Hospitals in the U.S. have the odd, but obviously sane, statement on the wall that no patient shall be denied treatment due to any reason including inability to pay.


Please don't be trying to advance the fungus sir, i live very near the Canadian border and I do know what happens every day.


there is a major physician shortage in Canada, for one, and people feel they get better care in the U.S.


You do what you like, but i want a doctor who has actually been fully trained in medicine.



You are right though, I'd head for a Mexican physician before I'd go to Canada and see a state sponsored physician who has minimal training.
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There's a shortage of doctors and health care professionals everywhere, including the US.

Google "ambulance bypass" for thousands of references of the poor being shuttled around between emergency rooms. The statement on the wall apparently only comes into play once the patient is actually in the hospital.

Doctor shortages and long wait periods are occurring throughout the world, including the US. The failures of the US medical systems, read any report on the rise and fall of the HMOs for starters.

Further, with the breakdown and failures within the american education system, I'd rather have a doctor trained anywhere but the US.

You go ahead and head for Mexico, you won't have a wait, just hope ya survive.
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Good timing
rtk 23rd Dec 2008
http://healthcare.zdnet.com/?p=1628

Proof that doctor shortages aren't a Canadian thing.

Might want to watch how fast you throw out the "liar" accusation.
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What a dumb response
rarsa 11th Dec 2008
I'm not calling you names, its just a jab at your response.

1. Your response has nothing to do with the original post and quite uninformed.
2. Canada has a lower mortality and morbidity rate than the US. please look at table one in http://www.usmedicine.com/column.cfm?columnID=91&issueID=38

In Canada Health is a right and a social responsibility. The shortage of doctors was due to an idiotic decision to cut medical school admissions that is being addressed. Even with that, our population still gets better health care than yours.

3. Open source is not socialized. It is actually quite capitalistic and democratic. The real survival of the fittest based on quality and market share.

4. You don't know what your children want. Unless of course you feed them the same Fox News that's made you into a right wing drone. (not that I am calling all right wings drones, just the ones that cannot think for themselves)

OK, Back to the real article.

These kinds of layoffs happen all the time in all industries, more efficient methods of production and higher quality leads to lower requirements in work force. This also leads to career shifts and general improvement of the people that are open to change.

It is great that Silver light has that quality. Too bad it only runs on Windows which MS will use it to strengthen the monopoly (with the help of companies like NetFlix). That's the only downside of the story.
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Silverlight runs on MAC
kdjkdj@... 11th Dec 2008
Its not just windows.
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Two dumb responses
hasta la Vista, bah-bie Updated - 11th Dec 2008
Dumb 1

4. You don't know what your children want. Unless of course you feed them the same Fox News that's made you into a right wing drone. (not that I am calling all right wings drones, just the ones that cannot think for themselves)

Dumb 2

So please keep socialized software out of the U.S., please. We don't want software that is receiving backing from governments around the world and got it's start from the huge U.S. program called Darpa.

We don't want that fungus, or should i say cancer eating away at the U.S. job market and economy. Our children don't want it either


~

I'm glad neither one of these two guys is speaking for me.
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It's captialistic?
Wolfie2K3 11th Dec 2008
3. Open source is not socialized. It is actually quite capitalistic and democratic. The real survival of the fittest based on quality and market share.

Capitalism generally involves someone producing a product and then exchanging that produced item for something else - usually money.

Communism - pure communism, mind you, as written by Marx, not the "revised" versions that are employed in order to make them "work", on the other hand, is a system where no one owns anything. Everything is shared equally - the work, the product of the collective, etc... Capitalism is considered evil because it's not fair.

Therefore, the business model adopted by most in the Linux community would be closer to pure communism rather than capitalism.

For what it's worth, the late Sir Arthur C. Clarke wrote in 3001: Final Oddyssey about how future supercomputers would be able to run ultra complex models based on entire societies. Based on their future research, it was concluded that communism was best left to social insects (bees) as human nature got in the way EVERY time.
It will run on OS X.


It will run on Linux. At least version 1. As for version 2 the necessary code and information was given to the community involved in Silverlight for Linux and the ball is in their hands. They had everything necessary to implement it. I recall the complaints about the Olympics from Linux ppl. due to having 1.0 support only, when the open source division/liason at MS did everything necessary to make sure the Linux folks could extend availibility to SL 2.0.



Where did you get the idea it was a Windows only technology? Were you just making an assumption.



Also on your 2002 stats you might have noticed that the U.S. is the only G7 nation with births and population growth enough to sustain it's population.


The GDP per capita in the U.S. is decades ahead of any other country on earth.


The U.S. gets 2.5 million new people every year, some illegal, which is much higher than any other G7 nation and many of these people are from 3rd world countries with poor health from the start.


Americans do NOT want socialized medicine and the government telling them who they can see and if they can see a specialist in a timely manner.


In Canada and other G7 countries it's not just elective surgery that has a painfully long wait, but also seeing specialists. Many times seeing specialists is an indicator of an underlying health problem that needs handled.


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Internet
Turntwo 11th Dec 2008
Didn't the internet come out of DARPA? If you don't like it, then why are you reading blogs and writing comments through it?
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An attempt to increase job security?
Given that this is an MS product they'll undoubtedly be paying somebody to fix the bugs and install all of the patches when the security holes start getting exposed.
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Sorry but you are wrong.
No_Ax_to_Grind 10th Dec 2008
Yeah, heard it all before. Factory automation will create new jobs. Bzzzzt, wrong, all it did was cost fatory workers jobs. Yes, it may have created one tech job for every 100 people let go, but I hardly call that a plus.
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History proves that I am right.
T1Oracle 11th Dec 2008
Else wise unemployment rates would have risen from the invention of the plow to this very day.

Factory workers lost jobs, but more schools were needed to train the techies to build, run, and maintain the automated factories. Materials delivered to the factories required more truck drivers, ship crews, and train operators. Furthermore, the roads had to be improved to handle the increased burden from more cars and trucks.

Also, as the company's value rose they spent more on advertising which again requires more workers.

It is easy to get stuck staring at one little dying tree and miss the entire forest of growing opportunity surrounding you.

Every new technology is a new opportunity. Those who lack the flexibility to learn, adapt, and think creatively will be left in the dust.
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Excellent Point
melekali 12th Dec 2008
When something new is created that that is more efficient/effective and causes job loss, usually this creates new jobs in different areas.

The flexible (those who want continued employment) find retraining and continue employment doing something different.
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More complicated.
Anton Philidor 11th Dec 2008
Automation can move people to similar jobs. Consider what happened to those who worked in data entry operations and typing pools.

But it often creates three tiers.

Consider the new, high level jobs, the tech jobs you mention. And the more sophisticated jobs still in the factory dealing with the automated system.

But you're right that in the third tier are people who were what some would call overpaid for the level of education and skill and talent required for their jobs.

That's a way to prevent sympathy for the economic fall from the middle-middle to the lower middle class.

Instead of the old job-for-life model, employment today seems more based on culling.

St. Augustine suggested that one of the benefits of Heaven was looking down on the suffering in Hell. I suspect that most people - including him - do not enjoy others' misery so much, and find a rationale for their good fortune which ignores those not so fortunate.
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And not a very good one at that.
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WOW! Really?!?!
safesax2002 10th Dec 2008
There's just no winning for Microsoft, huh? Yes, they may have some shoddy products and business practices but you don't have to bash them for doing something right!

Figures.

And yes, I manage Linux systems along with Microsoft. Neither one is perfect but they each have their place.
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Same old boilerplate M$ hater response
DoubleJava 11th Dec 2008
All of the M$ haters and Open Source lovers should really try to think through a thing wholistically before they go mouthing off. Personally, I like M$ technologies AND I like Open Source technologies.

However, if you are going to ding M$ for creating a bug-free, highly-efficient product, which costs techies their jobs, then you also have to ding all of those Open Source programmers who write software for free for eliminating the jobs of paid programmers.
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God your warped...nt
TheBottomLineIsAllThatMatters 11th Dec 2008
nt
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You can bet it's quite a few.

As a programmer, if your work doesn't make your employer more efficient, why would they hire/retain you? More efficient means less people doing the same amount of work, or the same number of people doing more work.

Sometimes the work you do results in someone being freed up to do other tasks that they didn't previously have time for. Other times people lose their jobs.

This summer, I wrote an app that allowed a worker to accomplish in 4 hours, what had been taking 40. She was able to take on other responsibilities and retain her job, but it doesn't always happen that way.

That is, unfortunately, the nature of business.
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It's Obvious...
melekali 12th Dec 2008
...from your username that you hate MS products. That kind of irrationality is really quite unhealthy, haven't you heard?
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Creativity
jabailo1 10th Dec 2008
This is happening in so many fields. We've made our products (cars, houses) so much better they don't need "repairs".

But there will always be insatiable demand for Creativity, new Programs, new Content. These techies will find homes supporting blogs and content providers -- and maybe companies that produce creative content -- new content -- for Netflix to stream...!
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Not a bad brag
John L. Ries 10th Dec 2008
Laid off because the software had become so reliable that fewer programmers were needed to maintain it? Sounds like the kinds of people other employers would want to hire.
I had problems with old Netflix player and needed to
call support. Now with their new Silverlight player,
I have zero problems on any computer.
I already have Flash, that's enough multimedia exploitware junk for me.

Plus I use Firefox and Linux, so now I guess Netflix no longer considers me a potential customer. :\
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Who keeps Flash working?
Anton Philidor 11th Dec 2008
Even FireFox has a way to turn off Flash so the ads stay in their place. I made the mistake of turning Flash on briefly and an ad decided to move around the page in order to be certain of gaining my attention.

Silverlight, which is being ported to obscure software, isn't as widely used as Flash, yet. Until then, it's safe to keep it running.
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Small Potatoes
kingle1 11th Dec 2008
Silverlight is a small load and works well. Only issue I've ever had is having v2 beta installed and having an incompatibility with a v1 website. Haven't had any problems since. Grow up -- even a blind squirrel can find a nut once in a while; as such, even MSFT can get one right periodically.
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Well....
Wolfie2K3 11th Dec 2008
You COULD always try out the Linux port called Moonlight and see how far that gets you. You might be able to tweak it so it works.

Then again, maybe not...
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Right
melekali 12th Dec 2008
I do the same. Firefox is my browser and NoScript blocks flash until I want it to play. I have yet to come across any Silverlight media I wanted to play.
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RE: The steep price of good technology
stevenjs Updated - 11th Dec 2008
in a just society, there would be no conflict between good technology and its social consequences.
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Social consequences from a rational and ethical business decision is not wrong or injust. It's part of living in a society, Netflix owes the government taxes and legal behavior, it's shareholders a good investment, and it's workers the pay and benefits they are willing to accept to work there. That's all, it is their duty to make the company more efficient as long as it leads to profitability.
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Laying off is not injustice!
ty_pippen@... 11th Dec 2008
While a company does have an obligation to it's shareholders and to stay in business means to stay profitable, the consumer can vote with their dollars which company wins their movie rental or buying experience.

Being a good corporate employer can also mean not laying off employees weeks before Christmas, at a time when empployment can be difficult to find.

Sometimes, saving money can cost an employer countless dollars because their actions are so distasteful to consumers that consumers decide to save their money just like NetFlix decided to save their money too.

And saying, "Even Microsoft does the same thing!" may be a gigantic mistake, since many consumers are looking for ways to displace that dominant giant. Apple sales are rising along with the various flavors of Open Source products.

Today, you have to make good products at a good price, but you also have to play the game fair and nice too!
Good luck, Netflix!
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Layoffs are Economic GENOCIDE!
tonym87@... 12th Dec 2008
Layoffs are nothing but the destruction of the livelihoods of people created by and in the image of God. It is a "Starve To Death In The Street" mentality. And I don't want to hear any whiny right-wingers screaming about "Lazy Bums On Welfare Who Don't Want To Work!" I have JUST HAD IT with genocidal job destruction in this country. I still remember the Clinton "Jobless Recovery" of the 1990's: Rising stock prices driven by massive layoffs. Then, only shareholders had rights; the only "right" workers had was to starve to death in the street!
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Ever heard of at-will employment?
just_thinkin_outloud 13th Dec 2008
Apparently you haven't heard of the demise of feudalism here in modern times, because you are talking like a serf. Yep, its true! The landlords don't own serfs anymore, and the serfs can't count on the landlords to take care of them for their whole lives. Cool news, isn't it! Now when either an employee or an employer doesn't feel the need to keep working together, either one of them can just call it quits. Freedom! - I think that's what they call it here. You should let that soak into your soul a little bit. You are free, and so is your employer. Now as for this whining about "destruction" and "genocide", keep in mind we aren't talking about life, we are talking about work. Your labors belong to you and when you get laid off, you take your labors with you -- they don't stay with the employer. Laying off workers whose work is no longer needed doesn't remove the ability of the worker to keep on working, does it? They didn't hamstring or injure the laid off employees did they? Was there a fairness clause in some employment contract that you know about? Oh, I know, if you're so concerned about the plight of all these folks, then YOU go start a business just so they can all have jobs! What's that you say? It's not easy starting a business? Ohhh, so when someone else runs a business, you have a RIGHT to work for them and get paid as long as you need the work, but now that YOU are the business owner it's okay to only hire the people you need? Get your head out of the clouds, Tony. Grow up and put on your big boy pants. You are free to make what you can of your life -- stop looking for someone to blame for struggles people face when other people make their own free decisions and you don't like the outcomes.
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Get Out of Fantasy Land
tonym87@... Updated - 15th Dec 2008
"Quit looking for someone else to blame...typical totalitarinan GARBAGE!Totalitarians get sadistic jollies out of blaming people for problems beyond their control. And we ARE talking about life... what about these people who "go nuclear" when they lose jobs and start shooting...like the father of three in California who killed his wife and three kids and himself rather than see them starve to death in the street. So called "At Will Employment" means genocidal garbage like "Only White People Under Age 45 can work here, etc." No one over age 50 can get a decent job in this country. The first thing Adolf Hitler did to the Jews was not kill the six million. No,it was THROW THEM OUT OF WORK in 1933 because they were Jewish. So there is Hitler's "At Will Employment" and it was GENOCIDE. Denying a highly skilled construction worker a job because of his irrelevant credit score... the list goes on and on. Real living breathing human beings are being badly hurt by such mean-spirited employment policies. Get out of the fantasy dream world and look at the real world!
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At-Will Employment is a farce.....
linux for me 16th Dec 2008
At-Will Employment is one of those "feel good" but very bad pieces of legislation which was pushed by businesses to protect their own interests. A state which has At-Will Employment can hire you one minute, then dismiss you the next minute without any reason at all.

Unless you can prove some type of discrimination, you have no options to fight back. I know from real experience that this does happen. I was just let go from a position for no reason other than someone was hired at a lesser rate of pay than I was getting. No reasons were given. That new hire was also years younger than I am.

So if you live in a state that is an At-Will Employment area, beware.
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The consequence is change
rarsa 11th Dec 2008
The social consequence will be that the laid of people will either:

- Get a job at another company using the skills acquired in NetFlix.
- Retrain and instead of supporting the new applications, create them or provide advice to the people creating them.

The only ones that will suffer are the ones that are resistant or incapable of change and help should be provided to them.
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Layoffs (Both Sides)
pyrdek 11th Dec 2008
Having been on both sides of this equation at one time or another in my life, I can tell you that being terminated by layoff or firing is traumatic. I also can tell you that each time it happened to me, I eventually ended up in a better job. In one case I didn't even get my normal two day weekend having lost one job on Friday and starting the new job on Sunday. To counter that, another time I was on unemployment and part-time work for close to a year.

The common factor was that I shifted jobs and picked up some extra training and education that opened new chances. I started as a radar maintenance tech in the USAF, became a TV antenna installer and repairman, TV station engineer, radio station engineer, Chief Transmitter engineer at a combined FM & TV station, University Television/Media Services person then two different computer jobs in the university ending up where I am.

You may notice that some of the jobs have been basically eliminated in today's job market because of advancing technology. You don't see many TV antennas going up do you? And when did you last have your TV repaired? The FCC and advancing technology basically eliminated almost all of the need for having many highly skilled technicians on staff. (Yes, I do admit that some of what I see technically happening on local TV stations causes me to wonder about the merits of this action but nevertheless, it is a fact.)

Not to introduce a different fight but you may also consider the Mac vs. PC support issue as similar. In the amount of time and with less effort I can support the Macs in my area as compared to the PCs. I get many fewer calls from Mac users than PC users. I realize that "your mileage may vary" but that is my experience. The technology in the Macs here, seems to have eliminated at least some of the need for computer support. The flip side of that is that the remaining people have just become more valuable because of what they do know how to do.

So Silverlight may eliminate some positions but if the people holding those eliminated positions are self-motivated, a whole different set of opportunities may be on the horizon.
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RE: The steep price of good technology
smithkl42 11th Dec 2008
Wow, this is the first you've heard of this? Are you
not familiar with the famous (and mythical) "General
Ludd" of "Luddite" fame? That goes all the way back
to 1811, when British textile workers rioted because
new technology was costing them jobs.

http://en.wikipedia.org/wiki/Luddite

Ken Smith
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The one thing i don't seem to understand is, before the lay-off of these 50 technical staff, there was a hiring or employment of a couple of developers, architects, designers, testers that actually developed this system (SilverLight).

So before you come up with the story of price of good technology, think about the inception.

I'm pretty sure Microsoft employed more than 50 people with different skills before they created SilverLight.

The only thing for most of you is the wish that you were one of the people who developed SilverLight, the ones that got hired, to create a technology so good. As I'm very sure, MS is most likely working on creating a newer version thats probably even better, it may even involve them hiring other specialist.

So stop slamming MS!
Major League Baseball dropped SILVRLIGHT partially because
the technolgy is poor for low power systems, and VERSION 2.0 will only install under Vista, INTEL Macintosh models, or Windows XP if you have service pack 2.

All other computer users are excluded!
What sh*t!

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