alt Hacker NewsI mean, this is just basic smart investing today. Software is now very easily replicable, and you wouldn't want to invest in software that has absolutely no moat.
At a minimum, this gives Bain more leverage when negotiating with these companies.
I mean, this is just basic smart investing today. Software is now very easily replicable, and you wouldn't want to invest in software that has absolutely no moat.
At a minimum, this gives Bain more leverage when negotiating with these companies.
> Software is now very easily replicable
How?
Do you mean by AI? I haven't seen any evidence of this.
It was always possible to get code generated at large volumes for low cost (offshore/outsource market) but we didn't see this upend or replace many (if any) software companies. In my experience it had the opposite effect - companies that replaced talented internal teams ended up suffering.
LLM generated code is similar, but arguably more expensive and lower quality.
We don't see LLM generated product replacement at scale because code generation is a problem, but it's not the only problem. Low quality can kill a product, but high quality doesn't guarantee success.
There's an entire ecosystem around a successful software offering. An ecosystem that depends on adequately functioning code.
LLMs may be useful for certain tasks (...maybe... - we've always had good options for repetitive code generation) but I certainly wouldn't describe it as "very easily replicable".