[rhubarbtree]

Margins on software will no longer be what they were, that’s the point. Commoditisation means software values will head to zero. Margins will depend on factors unconnected to the software itself. For example, brand, distribution, network effects, lock on, proprietary data.

It doesn’t matter whether coding was “the bottleneck”. It’s irrelevant. Fact is it used to be expensive to create software and now you’ll be to create it for super cheap. Yes, it won’t be as good. But the price will be so low it won’t matter. This is what commoditisation means. Forget the economics of software as you know it, that has ended.