After years as a developer for both startups and large tech companies, as well as recently founding my own startup, I’ve spent a lot of time digging into where real software value is moving as AI transforms the industry. Based on my experience and market research, I drafted what I call the Barbell of Software Value theory.
In short: Software value is concentrating at two ends—platforms and primitives (clouds, models, foundational dev tools) and private or internal systems built solely for a single large company. The middle generic horizontal SaaS is being squeezed out by AI-driven feature parity and vendor consolidation. Only highly vertical, deeply integrated SaaS with undeniable ROI survives. Everything else is getting commoditized or brought in-house.
I’d love to hear how others on HN are approaching this. If you’re building or investing, are you focused on platform, vertical SaaS, or internal leverage? Curious to get your perspectives.
mehmet_mhy•2d ago
In short: Software value is concentrating at two ends—platforms and primitives (clouds, models, foundational dev tools) and private or internal systems built solely for a single large company. The middle generic horizontal SaaS is being squeezed out by AI-driven feature parity and vendor consolidation. Only highly vertical, deeply integrated SaaS with undeniable ROI survives. Everything else is getting commoditized or brought in-house.
I’d love to hear how others on HN are approaching this. If you’re building or investing, are you focused on platform, vertical SaaS, or internal leverage? Curious to get your perspectives.