Evans: Big tech will not build narrow vertical SaaS because of scale limits
Benedict Evans · Are you a seal? · Apr 11, 2022 · at 28:25
Benedict Evans explains why hyperscalers like Google and Apple avoid building specialized vertical tools like Frame.io and instead sell underlying infrastructure.
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“When you're a company the size of Google or Apple or something there are things that are probably a perfectly good business, but they're just way too small as a proportion of that company for it to be worth, worth you donate it devoting the kind of effort that you would need to put into it to make it work. And, you know, you, you're not going to be able to focus in on a, on something that narrow and that deep and build a dedicated Salesforce, build dedicated software. What you'll do is you'll sell storage and machine learning to people who do that.”
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