Anish Acharya

But now with coding agents, the complexity of transitioning from SAP to Oracle is dramatically lower, the speed, the risk.

So that is how I think coding agents shows up in enterprise software, especially amongst public names.

Decrease switching costs, more customers, less hostages, which is a positive incentive for the entire ecosystem.

If history is any guide, and to reference Alex, he would say that it often is.

Those who have actually studied history tend to do better than those who have not.

What I would say is that when you have this product cycle and you have a capable incumbent, what happens is they usually make their product better for their existing categories.

Microsoft will make a better word processor than they've ever made.

Google will make a better search engine than they've ever made.

We're actually starting to see that, some of that anyway.

What you instead see is the native categories that did not exist before the product cycle being owned by startups.

I think that's a little bit of what we're going to see.

If you said something like software movies or AI moviemaking or AI-assisted movies, that's just not a category in which there is an incumbent.

I'm betting that a native company will actually win that.

It probably won't be Adobe.

Will Adobe make a better Photoshop and Illustrator than ever before?

Probably.

I don't know if it'll create more value, but I think that it is under-discussed how much value it's going to create.

If you think of what the models are, so if we lived in a world, and we were actually thinking about this a lot in 2022 and early 2023, which is if you had a single foundation model company, which at the time was OpenAI, which was a whole generation ahead,

then they essentially were this unique supplier to everybody downstream in the innovation ecosystem.

And they could do what you would do if you, for example, you know, controlled the Beatles and you're the only record label to have the Beatles.