The end of the Zero Interest-Rate Policy (ZIRP) era has brought profound changes across various industries, and system architecture is no exception. During the ZIRP era, the abundance of capital led to an environment where software development practices were often bloated and inefficient. As we transition into a new economic reality, there's a clear shift toward more streamlined and efficient architectural practices.

What Defined the ZIRP Era?

During the ZIRP era, the tech landscape was characterized by a surplus of resources—both financial and human. This led to certain practices that, while innovative, also introduced unnecessary complexity:

  • Proliferation of Micro-Services: The principle of "Separation of Concerns" was taken to the extreme, with each concern being mapped to its own micro-service. This resulted in a fragmented system where even low-traffic applications were split into numerous micro-services. While micro-services promised modularity, they also brought about a significant amount of boilerplate code, complex setups, and an over-reliance on queueing and pub-sub architectures.
  • Over-Hiring and Organizational Bloat: The availability of capital led to over-hiring, with too many teams managing different parts of the stack. The organizational structure was often mapped on to the codebase, with each team wanting to own their separate micro-services and repositories. This not only increased redundancy but also led to silos within the organization.
  • DevOps Complexity: The intricate architecture resulted in a proliferation of infrastructure as code and complicated cloud setups. The need to manage numerous micro-services often led to convoluted DevOps pipelines, making deployments and maintenance more challenging.

The Post-ZIRP Future: A Shift Towards Efficiency

As the economic landscape tightens, the approach to system architecture is evolving. The focus is now on building more efficient, scalable, and maintainable systems. Here are some guiding principles and emerging trends shaping the post-ZIRP future:

  • Less Code is Better: There's a growing recognition that simplicity is key. Writing less code not only reduces bugs and maintenance but also accelerates development and deployment cycles.
  • Speed Over Everything Else: In the current competitive landscape, speed is paramount. Whether it's the speed of development, deployment, or user experience, the emphasis is on building systems that can move quickly from concept to production #buildinpublic
  • Don't Reinvent the Wheel: With the rise of mature platforms and libraries, there's no need to build everything from scratch. Leveraging existing tools and frameworks allows teams to focus on their core business logic.
  • A Polished UI is a Must-Have: User experience is no longer an afterthought. A polished, intuitive UI is crucial for user retention and satisfaction, making it a priority in the development process.

Architectural Shifts: Embracing New Paradigms

The post-ZIRP era has seen several key shifts in system architecture:

  • The Rise of the Monorepo: Instead of spreading concerns across multiple micro-services, the principle of "Separation of Concerns" is now implemented within different modules in a single monorepo. This approach simplifies code management, reduces duplication, and fosters better collaboration among teams.
  • Emergence of platform layers above AWS/GCP: While AWS and GCP remain dominant, there's a rise in platforms like Render, Modal, Vercel, and Supabase. These platforms offer mature, easy-to-use solutions that can handle the scale of most startups. They also provide usage-based pricing, making them more cost-effective for smaller teams.
  • Maturing of Low-Code Platforms: Tools like Retool, Airtable, and Smartsheets are no longer just for internal tools. They're beginning to play a role in user-facing product flows, offering a quicker path to deployment and iteration.
  • The 2-Party System: The tech stack is consolidating, with Typescript (Node/React/Next/React Native) and Python emerging as the dominant languages. This standardization simplifies hiring, code sharing, and tool integration.

As we bury the ZIRP-era excesses, it's clear: the new mantra is "simplify or die." The era of bloated micro-services and devops nightmares is over. If your teams and architecture isn't lean, agile, and leveraging the latest tools, you're already behind. In the fast-paced post-ZIRP world of AI-empowered tech, the only thing that's certain is change—and those who can't keep up will be left in the dust.

Authors

Anusheel Bhushan