The New Moats

startups today need to build systems of intelligence™ — AI powered applications — “the new moats.”...
SaaS and cloud services can have strong economies of scale; ... your product or service has “network effects” if each additional user ... accrues more value to every other user;...
Proprietary software or methods is where most technology companies start:... High Switching Costs... as difficult as possible for them to switch to a competitor;...A strong brand can be a moat... can quickly evaporate if your customers lose trust in your product;...
Startup ... execute a dual-pronged strategy: 1) Attack legacy player moats and 2) simultaneously build their own defensible moats that ride the new wave....
Today the market is favoring “full stack” companies, SaaS offerings that offer application logic, middleware, and databases combined... next generation of enterprise products will use ... AI techniques to build systems of intelligence... machine learning (ML), can be combined with data, a business process, and an enterprise workflow to create the context to build a system of intelligence.... build a virtuous cycle of data because the more data you generate and train on with your product... the better your product becomes... tailored for each customer ... high switching costs.