Key insights
- The author argues that the market is underestimating the resilience and growth potential of large software companies in the age of AI. Instead of being disrupted, these companies are pivoting to 'agentic models' and will thrive by selling AI-powered agents. The author believes that companies will prefer to buy validated software solutions rather than build their own, benefiting established players.
The market thinks that AI will kill all software companies because now they can create their own tools... This thinking demonstrates a lack of knowledge about how software creation works, especially for medium and large companies.
You can create or vibecode an entire app like Salesforce, ServiceNow, or Adobe. You can even hire a team to maintain it, but you will never have worldclass software. These companies have the knowledge and experience and with AI are creating the Agentic era.
If you're a CEO, what would you prefer? Invest in a team to create and maintain an application from 0 that will support your business? At the beginning it will be cheap, but in the future it will be expensive. You will be more responsible for security, and you will lose market standards. The second option is to pay for validated, robust, and secure software. You won’t have to manage developer teams, and you can focus on your real business. What do you decide?
The question is that big software companies are pivoting to agentic models. These companies will not disappear; they will grow quickly. Now they are not selling software, they are selling agents.
Can you see it?
And could Anthropic and OpenAI create all the software in the world? Maybe. But do they really want to? I don’t think so, they are focused on other things.