Agents Make Vertical Software Businesses Viable

Notes

Software businesses used to naturally move horizontally across a given function because software was hard and expensive. So you built one tool like a CRM and sold it to everyone.

Agents change the entire dynamics. Software is cheap. This means you can build a great business for a narrow market. Industry expertise is the wedge.

On the other hand, agents also enable horizontal businesses to scale across other functions quicker and adapt to more industries.

I think this is a more difficult task for incumbents—largely because this means a complete change in how they think about software.