Software Economics

What happens to software economics when the cost of producing software collapses faster than the value customers are willing to assign to it?

An evolving argument about value capture, pricing, margins, and willingness to pay as software and intelligence become increasingly abundant.

active · 2024–2025 · updated 2026-08-11

#software #business-models #ai

When software becomes easier to produce, production alone stops explaining price. The harder questions concern who captures value, which margins survive, and whether customers continue to pay for seats, services, outcomes, or access to intelligence.

This Thread follows the economic consequences of abundant software without collapsing into generic business strategy.

The argument

  1. Essay:

    Beyond Efficiency: The Transformative Power of AI in Revolutionizing Business Models

    AI's real power is not shaving costs off old businesses. It is inventing new ones that were impossible when intelligence was scarce.

  2. Essay:

    How AI Will Disrupt Incumbents and Erase Traditional Margins

    AI does not just make markets bigger; it compresses the margins that once protected incumbents.

  3. Essay:

    Enterprise AI Sales Is Changing - Here’s Where the Money Really Is.

    The money in AI is not where the models are smartest. It is where the model gets embedded into a workflow someone will actually pay for.