Why Software is eating the world?

It is clear to see how software is shaping multiple industries and everyday lives. Software is eating the world. This is the thought of Marc Andreessen when he wrote up his thoughts on how the world is changing. Highlighting how the world was past the ‘dot-com bubble’ of the 90s, Marc discussed how we were seeing a new bubble was upon us, a software revolution -from the Silicon Valley, California.
Silicon Valley in California is world-renowned, if not most of Earth’s “technology district” – housing companies from start-ups to well-established household names such as Google, Facebook, Microsoft and more. These companies are the ones dominating the world economy.
Ask your parents how they used to send messages or do shopping. They had to visit a post office to write a letter and courier it to another person but now with the help of whatsapp a software by just one click the message gets delivered in seconds, Similarly to buy any furniture or electrical appliances, etc they had to visit shopping centres but now with the help of E-commerce platform such a Amazon one can buy anything, anywhere, anytime with just a click. This much software has developed over the years.
Why Software is eating the world?
The article points towards a shift in the way companies are running, reducing the use of man-power to software that automates and can efficiently do the work, reducing overheads while maintaining the ability to remain efficient. In the case of expansion or changes to business methods, all it takes is a software update to alter in the software and the system functions automatically. Companies are testing applications in form of BETA apps and software models designed to help them run more efficiently. Before 10 years ago , the physical presence was give more priority even when technology was in place but now companies are cutting middle man out to reduce their workforce. But in today’s world the presence of software is given more importance.
Software companies has shown tremendous growth in today’s world. Software isn’t just beneficial to the operational/manufacturing side of a business. It’s also beneficial to head office divisions in order to stay on top of figures and production, the data side of a company sensing any patterns in the software or opportunities on certain data points. This follows through to marketing who can work with this data and of course work effectively and efficiently who are able to access data live themselves in order to be aware of what is going in a company. In tech-world company one has to re-build their MOAT. Because every other day one tries to compete another so to be in the business on has to update their software as per the new trend in the market.
In a world dominated by digital transformation, leaders should understand that operating with the old mindset will not help their companies face customer behaviour changes or new types of competition.
The Rise of Software Companies:
Amazon- a $1.7 trillion company-The famous book seller became a software company. Amazon offerings include their Prime video and audio libraries, multiple apps as well as other services such as Prime delivery, Amazon Kindle and of course – their retail website . However, the main reason Amazon is seen as a software company is mainly because of their lesser-known commercial products, but an industry-renowned tool of Amazon Web Services (AWS). Loudcloud, the cost of a customer running a basic Internet application was approximately $150,000 a month. Running that same application today in Amazon’s cloud costs about $1,500 a month.
-Today’s largest video service by number of subscribers is a software company. Netflix has changed the way of content streaming many data cable service providers disrupted , Whatsapp for messages & videocall , LinkedIn for job profile and recruiting, dominant music companies too: Apple’s iTunes, Spotify .

Leading world retailer, Wal-Mart, uses software to power its logistics and distribution capabilities, which it has used to crush its competition. Likewise for FedEx, which is best thought of as a software network that happens to have trucks, planes and distribution hubs attached . By the use of software they can optimize routes to reduce their cost to most possible.

Oil and gas companies also uses software for exploration by the help of visualization and analysis. Agriculture is increasingly powered by software as well, including satellite analysis of soils linked to per-acre seed selection software algorithms . Electronic arts (EA) is a software company developing games like Cricket , FIFA . 3D printing technology is disrupting the traditional manufacturing industry.

This article concludes that software companies are future and there is potential growth in software companies. This change has made people to enhance their abitilites in coming future in order to compete.

Source,
https://a16z.com/2011/08/20/why-software-is-eating-the-world/