🍔 Is Software Still Eating the World in 2023?
Apr 30, 2023 . 4 min read . 122 views
In 2011, Marc Andreessen famously declared that "software is eating the world" and would transform every industry. Over a decade later, it's worth examining whether software has lived up to the hype and continues to dominate the world in 2023.
Software's Impact on Traditional Industries
There's no denying that software has replaced many traditional ways of doing things. Messaging apps like WhatsApp have replaced SMS, and streaming services like Netflix and YouTube have disrupted the video and movie industry.
However, Andreessen also predicted that healthcare and education would see significant changes thanks to software. In reality, these sectors have largely remained untouched, as most of the economy is still physical services rather than digital. This may be why meta/Facebook has struggled with its metaverse idea, as it's difficult to replicate physical experiences with software alone.
The Emergence of Middle-Class Software Businesses
One significant development in the software industry over the past decade has been the emergence of a "middle class" of software businesses. These are indie businesses created by small teams focused on specific niches. Like small corner stores, they cater to the needs of a particular community. As software has become easier to create, it's now possible for small teams to create software products and services that can compete with larger players.
The Challenge of Creating a Lasting Software Company
However, creating a lasting software company has become more challenging in recent years. The audience is always evolving, and any software that is entirely digital will have a maximum shelf-life of five years. Companies like Uber and Zomato that have a real-life element have a bigger shelf life, around 15-20 years.
But even these companies will eventually get disrupted by government-enabled coordination efforts, like India's ONDC and UPI initiatives, which offer software as a public good. We're also seeing something similar with business software, as the rise of open-source software has enabled companies to opt for software they can deploy as required.
Software's Continued Dominance in 2023
So, is software still eating the world in 2023? The answer is yes, but with some caveats. While software has replaced traditional ways of doing things, there are still sectors, particularly that require a physical touch, that remain largely untouched.
The rise of middle-class software businesses has made it easier for small teams to create software products and services, but creating a lasting software company has become more challenging due to the constantly evolving audience. The shelf life of entirely digital software is limited, and companies will need to find other ways of monetizing their products and services.
The Next Big Opportunities in Software
As the software industry continues to evolve, the next big opportunities may lie in creating "hard tech" for the future. Augmented reality (AR) devices and brain interfaces are just two examples of technologies that could transform the way we interact with the world around us. These technologies are still in their early stages, and there's plenty of room for innovation and disruption.
The rise of the Internet of Things (IoT) is another area where software will play an increasingly important role. As more devices become connected, software developers will need to create applications and interfaces that allow users to interact with these devices seamlessly. Additionally, software will be crucial in addressing the growing need for data privacy and security as more information is generated and stored online.
Conclusion
Software is still eating the world in 2023, but the landscape has changed significantly since Marc Andreessen made his prediction in 2011.
While software has replaced traditional ways of doing things, some sectors remain largely untouched, and creating a lasting software company has become more challenging. The rise of middle-class software businesses has enabled small teams to compete with larger players, but the constantly evolving audience means that companies will need to find new ways of monetizing their products and services.
The next big opportunities in software may lie in creating hard tech for the future, such as AR devices and brain interfaces, which could transform the way we interact with the world around us.