Moore’s Law and the Enterprise Software Leap: A Jump Off the Tracks?

In the interview, Rich Karlgaard’s statement about Moore’s law “jumping off the tracks” in the enterprise software space requires careful analysis. While the traditional exponential growth in processing power predicted by Moore’s law has indeed slowed down, its impact on enterprise software is more nuanced than a simple derailment.

Examples from the Interview:

• McDermott emphasizes the shift from hardware-centric to software-driven innovation. As Moore’s law plateaued, the focus moved from faster processors to smarter algorithms and data-driven insights. This is evident in ServiceNow’s AI-powered workflow automation platform and its focus on cloud-based solutions.
• The interview mentions the rise of “composable software,” where modular, interconnected applications replace monolithic suites. This allows enterprises to adapt and innovate faster, independent of hardware limitations.
• The emergence of low-code/no-code platforms democratizes software development, making it accessible to business users without extensive technical expertise. This bypasses hardware constraints and empowers businesses to tailor solutions to their specific needs.

Comparable Cases:

• The smartphone industry presents a similar case. While processing power advancements have slowed, software innovation has transformed smartphones into multifunctional devices, driving continued growth and development.
• The healthcare sector is witnessing a similar shift. AI-powered diagnostics, wearable health trackers, and telehealth solutions are revolutionizing healthcare delivery, even with limited hardware leaps.

Beyond Hardware: Redefining the Game

While Moore’s law’s traditional trajectory may have altered, its underlying principle of continuous improvement remains relevant. The focus has shifted from raw processing power to software-driven intelligence, data-driven insights, and user-centric design. This is evident in Bill McDermott’s statement that “technology used to support the business. Now, technology is the business model.”

Understanding McDermott’s Statement:

• Technology is no longer a peripheral tool but a core driver of business value. ServiceNow’s success exemplifies this. Its cloud-based platform, powered by AI and workflow automation, creates efficiencies, drives customer engagement, and fuels business growth.
• Software is becoming increasingly embedded within business processes and products. For example, Uber’s app isn’t just a way to book rides; it’s the core of their business model, managing drivers, passengers, and logistics.
• Data is the new oil, fueling innovation and competitive advantage. ServiceNow’s platform analyzes vast amounts of customer data to generate actionable insights, personalize experiences, and optimize operations.

Examples beyond ServiceNow:

• Tesla’s self-driving technology and electric vehicle ecosystem are deeply intertwined with its brand and business model.
• Amazon’s web services platform (AWS) is not just a technology solution; it’s a core engine driving its cloud computing dominance.

The COVID Economy and Getting it Right:

The pandemic has significantly altered the business landscape, accelerating pre-existing trends and forcing industries to adapt. “Getting COVID right” entails recognizing and responding effectively to these changes.

Example from the Interview:

• ServiceNow’s focus on remote work solutions and workflow automation aligns with the increased demand for digital collaboration and operational efficiency in a post-pandemic world.

Other Sectors:

• The retail sector has seen a surge in e-commerce, necessitating investments in online platforms and logistics infrastructure.
• Healthcare has adopted telehealth and virtual consultations, requiring robust telemedicine platforms and data security measures.

Conclusion:

While Moore’s law’s trajectory may have changed, its spirit of innovation lives on in the enterprise software space. The focus has shifted from raw processing power to software-driven intelligence, data-driven insights, and user-centric design. Technology is no longer just a support tool; it’s the engine driving business models and shaping the future of industries. “Getting COVID right” requires recognizing and adapting to these changes, using technology to navigate the new landscape and emerge stronger and more resilient.