Marc Andreessen Believes Software Is Eating the World (A Good Thing)

  • “In an upbeat and highly insightful essay on technology and innovation, pioneer Marc Andreessen outlines the ‘dramatic and broad technological shift in which software companies are poised to take over large swathes of the economy…'” comments ETCentric staffer Bob Lambert with this submission.
  • Andreessen notes HP’s announcement that it is “exploring jettisoning its struggling PC business in favor of investing more heavily in software” and Google’s plans to “buy up the cellphone handset maker Motorola Mobility” as recent surprises in the tech world, yet also examples of what makes the pioneer “optimistic about the future growth of the American and world economies.”
  • Andreessen suggests that Apple and Google are undervalued and we should avoid using the term “bubble” when analyzing the value of technologies. He writes: “…too much of the debate is still around financial valuation, as opposed to the underlying intrinsic value of the best of Silicon Valley’s new companies.”
  • “Over the next 10 years, I expect many more industries to be disrupted by software, with new world-beating Silicon Valley companies doing the disruption in more cases than not,” Andreessen adds.
  • Andreessen’s essay offers a compelling take on the direction of the tech industry, its place in world economies and some of the challenges that lie ahead. He notes interesting examples including Amazon, Netflix, Pixar, Pandora, Skype and others.
  • “Instead of constantly questioning their valuations, let’s seek to understand how the new generation of technology companies are doing what they do, what the broader consequences are for businesses and the economy and what we can collectively do to expand the number of innovative new software companies created in the U.S. and around the world,” he concludes. “That’s the big opportunity. I know where I’m putting my money.”

2 Comments

  1. This article is a great read — surprisingly well-written and dense with thought-provoking examples. Interesting to consider the non-obvious entertainment implications of the trend…

  2. This article is a great read — surprisingly well-written and dense with thought-provoking examples. Interesting to consider the non-obvious entertainment implications of the trend…

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