The Cloudcast

The Hollowing Out of the Software Middle


Listen Later

'Software companies taste like chicken,' says private-equity mogul. 'They’re selling different products, but 80% of what they do is pretty much the same'

SHOW: 726

CLOUD NEWS OF THE WEEK - http://bit.ly/cloudcast-cnotw

CHECK OUT OUR NEW PODCAST - "CLOUDCAST BASICS"

SHOW SPONSORS:

  • Equinix Global Data Centers and Networking 
  • Learn more and signup at https://deploy.equinix.com/. Use the coupon code CLOUDCAST to get $500 in credits to get started. 
  • Find "Breaking Analysis Podcast with Dave Vellante" on Apple, Google and Spotify
  • Keep up to data with Enterprise Tech with theCUBE

SHOW NOTES:

  • VCs comment on how 80% of software is all the same (WSJ)
  • 218 Booths at Kubecon Analyzed


THE MARKET USUALLY ONLY SUPPORTS THREE OPTIONS

  • Walking around KubeCon,nearly every segment had 6-10 companies offering solutions
  • Markets can’t sustain more 3 in any category (Market Leader, Market Follower, Cheaper Option)
  • The Market can’t understand the differentiation of the 6-10 company market; 80% of the functionality is the same.
  • We’re coming out of Unicornpalozza (2019-2022)

OPEN SOURCE AND SAAS HAVE HOLLOWED OUT THE MIDDLE OF SOFTWARE

  • Open source typically highlights the creator, largest contributor to a project
  • Beyond that, open source is “integration” companies, or “lifecycle” companies
  • Large companies (or platforms) can buy up the “feature” companies to fill in their gaps
  • Companies in the middle have to build sales and marketing around mostly undifferentiated messaging or products.
  • SaaS allows companies to leverage product-led-growth, and micro-target to specific use-cases. 
  • The successful middle (mid-sized, decent growth) will get picked off by PE
  • The unsuccessful middle (great tech, bad execution) may get picked off by large vendors
  • The unsuccessful middle (average tech, bad execution) will go under


FEEDBACK?

  • Email: show at the cloudcast dot net
  • Twitter: @thecloudcastnet


...more
View all episodesView all episodes
Download on the App Store

The CloudcastBy Massive Studios

  • 4.6
  • 4.6
  • 4.6
  • 4.6
  • 4.6

4.6

147 ratings


More shows like The Cloudcast

View all
Hanselminutes with Scott Hanselman by Scott Hanselman

Hanselminutes with Scott Hanselman

377 Listeners

Software Engineering Radio - the podcast for professional software developers by se-radio@computer.org

Software Engineering Radio - the podcast for professional software developers

272 Listeners

The Changelog: Software Development, Open Source by Changelog Media

The Changelog: Software Development, Open Source

282 Listeners

a16z Podcast by Andreessen Horowitz

a16z Podcast

1,014 Listeners

Thoughtworks Technology Podcast by Thoughtworks

Thoughtworks Technology Podcast

42 Listeners

Talk Python To Me by Michael Kennedy

Talk Python To Me

591 Listeners

Software Engineering Daily by Software Engineering Daily

Software Engineering Daily

627 Listeners

AWS Podcast by Amazon Web Services

AWS Podcast

203 Listeners

Gartner ThinkCast by Gartner

Gartner ThinkCast

111 Listeners

DataFramed by DataCamp

DataFramed

265 Listeners

Kubernetes Podcast from Google by Abdel Sghiouar, Kaslin Fields

Kubernetes Podcast from Google

181 Listeners

Practical AI by Practical AI LLC

Practical AI

189 Listeners

The Stack Overflow Podcast by The Stack Overflow Podcast

The Stack Overflow Podcast

64 Listeners

The Real Python Podcast by Real Python

The Real Python Podcast

140 Listeners

The Pragmatic Engineer by Gergely Orosz

The Pragmatic Engineer

52 Listeners