Nihal Uppugunduri's WebsiteI’ve been recently thinking about the potential of newer technology to accelerate a phenomenon that I call “source consolidation.” It seems to me that this will only speed up even further as technology progresses, for example as generative AI becomes more powerful and prominent. In this post, I talk about what I mean by source consolidation, how it relates to tech and generative AI, and what its implications can be.
Google. Apple. Amazon. Facebook. Microsoft. They all market directly to consumers. However, their consumer products, especially when free of cost, can be supported by high-value business models for enterprises. For example, AWS is a major cash cow for Amazon, and in general, businesses pay big money for enterprise tech for later payoffs due to the increased efficiency. Additionally, innovation in enterprise tech has a positive developmental feedback effect on consumer tech, whereby production processes can be improved and form compounding sequences of “improving improvements”. Enterprise tech thus produces fundamental value for enterprises and consumers alike.
