GenAI Likely to Boost Software Markets

Lots of conversation / debate around GenAI, and if it'll shrink markets / create deflationary software forces (because you can do more with less). I really disagree with these takes for one main reason - GenAI will create an epic services-to-software rotation which will greatly INCREASE the size of software markets. I don't really think this is that controversial of a take

My favorite quantitative example that lays out how big some of these services markets can get comes from the Mulesoft S1 back in 2017:

"We estimate our current market opportunity to be $29 billion...Separately, Forrester estimates an additional $394 billion will be spent in 2017 on systems integration project work [services], which does not include the spending on custom-coded integrations by internal development teams."

A 14:1 ratio of services : software spend! And that leaves out all the spend on internal employees who are essentially "internal services." Many other markets have similar dynamics

https://x.com/jaminball/status/1824151061856461197

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