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Contemporary · Essay

Why Software Is Eating the World

Marc Andreessen · 2011

"Every company is becoming a software company; software firms will disrupt incumbents across every industry."

The idea

In 2011, Marc Andreessen published an essay declaring that all traditional industries—from movies to agriculture to national defense—were being disrupted and taken over by software companies.

Why it works

Andreessen argued that we had reached a tipping point where global broadband, cheap cloud computing, and ubiquitous smartphones provided the infrastructure for software to be delivered everywhere, instantly. Because software has zero marginal cost of reproduction, a software company can scale globally at a fraction of the cost of a physical business. As a result, the best company in any given industry (like Netflix in movies, or Amazon in retail) is fundamentally a software company.

The takeaway — recall it first
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What economic property of software allows it to 'eat' traditional industries?

Further reading

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The explanation above is written with AI assistance. These are the originals — go to them to check it.

  • Why Software Is Eating the World (Marc Andreessen, 2011)Marc Andreessen / a16z
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