The world of software is becoming a melting pot.
What happens when
@salesforce acquires a company in every category?
When every platform or brand can do everything, what happens to the startup landscape? Who, without outsized Salesforce/NVIDIA-level budgets, will remain?
The answer I can think of: Companies that invest in two things:
1. brand - the intangible thing that answers the question of “Why” you exist.
2. Innovation - the ruthless pursuit of doing something new, or doing something old differently.
But even then, you might still be hurtling towards the inevitable. The sad reality is that even if you do differentiate in one of these ways, you’ll probably just position yourself as the next attractive M&A target.
As
@pmarca said, and
@JensenHuang built on,
“Software is eating the world, and AI is eating software.”
They were right, and this is what that consumption looks like in practice. SaaS is not dead. It’s just converging into Ultra-SaaS… or maybe SaeS: software as EVERY service. 😅😂
As someone who has a deep love affair with software, I’m divided. Part of me is excited to watch the future of software unfold before my eyes, while another part of me is terrified for what this progression means for the future of software and the smaller incumbents in the space.
Mergers and acquisitions are not a new phenomenon. But the velocity and buying power have changed. Salesforce acquired Fin for $3.6 Billion…
@nvidia just purchased
@huggingface for almost $13 Billion…
And as if Billion wasn’t a big enough number, try this on for size: NVIDIA themselves are worth $5.4 trillion.
A trillion dollars might as well be a gazillion dollars as far as I’m concerned. As a comparison, the US Federal Reserve holds something like $7 Trillion in assets. So NVIDIA is worth almost as much as the entire Federal Reserve of one of the most powerful countries on earth.
I’d urge
@Benioff,
@DarioAmodei,
@sama and others to consider the ripples of their impacts on the future of the industry. We were all startups once. Surely it can’t be hard to empathize with incumbents who are very much currently wearing your old shoes.
Perhaps capitalism isn’t the only answer. Perhaps a software industry with little-to-no competition isn't a good thing.
How many billions and trillions and gazillions of dollars will finally be enough?
I believe software is one of humanity's greatest tools, and it's now easier than ever to build. We must be careful that in our rush to democratize software development, we do not also simultaneously discourage the next wave of founders by making market entry seem terrifying and borderline impossible.
And this is my hot take for the day.
- a concerned software marketer