“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” — Bill Gates
This is Part 3 of my series on the collapse of the traditional software industry.
This is Part 2 of my series on the collapse of the traditional software industry. In Part 1, How “Vibecoding” and The Outcome Economy Are Killing the SaaS Dinosaurs, I explained how AI is making software production free. Today, let’s talk about why your pricing model is about to bankrupt you.
Let’s start with a bedtime story that is currently keeping the General Counsel of a $10 billion company awake at night.
In June of this year (2025), a developer named Michael Luo (known online as “AzianMike”) decided he was tired of paying DocuSign $15 a month to sign three PDFs.1 He didn’t complain on X (formerly Twitter).
Let me give you some context before I start ranting. I’ve been in the trenches of media technology for 25 years. I was writing code for Set-Top Boxes (STBs) when “on-demand” meant walking to Blockbuster. I built the architecture for the first DVRs that let you pause live TV. I have worked on engineering the streaming pipes that allow you to binge-watch in 4K without buffering and to figure out how to connect a second screen device to a Satellite Pay TV system.
Products are built the same way life has evolved and will keep on evolving in the future. The Red Queen Effect defines it well that how organisms must constantly adapt, evolve and proliferate in order to survive when pitted against ever evolving rival organisms in a constantly changing environment.
Most of the technology companies across the world have very similar organisational structures.
Talk to anyone in the senior management including the CEO, CTO, Sales head, Engineering head , & everyone else and they’ll define the problem statement, create the requirements, propose a solution, design and detail out implementation specifics and even create a multi-phase release plan in less than an hour. All of this gets done for a product feature that the customers themselves are not even sure whether they need it or how they are gonna use it ?