“AI will eat software” has become the reigning market narrative. It’s a provocative narrative, and it may be directionally correct, but it’s about to mislead a lot of investors and operators. The reality from inside the software space is more nuanced — and the implications for who wins and loses are more profound.
A new AI-driven computing architecture is splitting the enterprise software landscape into two camps: vendors whose competitive moat is evaporating before their eyes, and those whose value has just multiplied. This restructuring isn’t arbitrary, nor is it a question of execution or branding. It follows a clear architectural logic most market observers haven’t yet articulated.
