Software Market

“We are starting to see more evidence that models are going to own that more than the 10%, ah, you know, whether it's the new plugins that, ah, you know, Claude has released that shook up the whole SecOps market.”

“So I do believe in a six month and year timeframe, you will probably see a shakeout on what survives and what doesn't.”

“Normally when a new technology comes, it sort of expands the market before it contracts, because people are already in their momentum.”

“I said a lot of the software market feels like the office equipment and imaging sector in the nineties. So companies like Sharp, Canon, Panasonic. Revenue was still up and to the right, but widespread adoption of the internet emails and PDFs was on the horizon…”

“A lot of the software market feels like the office equipment and imaging sector in the nineties. So companies like Sharp, Canon, Panasonic, revenue was still up into the right, but widespread adoption of the internet emails and PDFs was on the horizon.”

“My assumption is that every market of any reasonable size will be flooded with AI products. Maybe it already is, but my assumption is if it isn't already, it's going to be.”

“After about three or four years, you grab what share you can, and then in most other markets, then there's a long ten-year, twenty-year period, where even though the market doubles, trebles, 10 X's, the rough market share at the start is the rough market share…”

“The services market is significantly larger than the software market, right?”

“I think we're going to go through a similar transition. Like the whole market is going to go towards agents. I think the whole market is going to go towards outcomes based pricing. Not because it's the only way, but it's going to be like the market is going to…”

“And these markets are much bigger than software markets.”

“If you want to commoditize the market and have every company own your software, you have to have a very small price.”

“It's very, very new, but a lot of the hyper growth that we're seeing in this category of company is because they are really moving into the labor market and less the software market, and that nurse example is kind of a prime example of that.”

“I think it's possible that compound software businesses are the wave of the future. And also like, there will be three of them, you know, and there's not, it is actually an argument for many fewer businesses. But much larger and more successful ones, if that's…”

“I, I'm pretty sure that the market here shrinks by an order of magnitude, and instead of fighting over five trillion, I think we'll be fighting over Five hundred billion.”

“So I believe the market consolidation is coming. Almost every software market only has one or two players, right?”

“If they just on day one, you could be guaranteed a hundred percent accuracy, like as though you're just building a web app on top of a database, the barrier to entry to build these things goes way down. It's gonna be more competition than ever. And then it wil…”

“Services markets are usually 10 X bigger than software markets.”

“It may be it may not be very well understood that a significant part of the opportunity for AI is services, not software markets, right?”

“Software markets are much larger than anyone thought. The billion dollar companies are now ten billion dollar companies. And so what that means is the entry valuations can actually be much higher than before.”

“First, self-driving trucks or trucking in the US is a massive market. It's like two or three times the total size of the software market in terms of revenue dollars.”