Sunday, August 13, 2023

Cloud and Software Economics

If every company has become a software company, is it still easy to be a profitable software company? Lots of things are changing around the economics of software.

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BEING A SOFTWARE COMPANY - JUST BUILD A MOAT

  • Are we sure every company wants to become a software company?
  • Lots of software licensing changes in the news
  • Making money as a software business, at scale, is difficult

PEOPLE DON’T LIKE MOATS AROUND THEIR SOFTWARE

  • Open source is good for collaboration
  • Open source could be good for marketing
  • Software margins attract VCs
  • Open source mostly hates software margins
  • What happens to all the software companies funded by VCs over the last 3 yrs?

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