Since Andreesen made his claim, software has become ubiquitous, embedding itself into every business function and solution. Consequently, problems are no longer solved exclusively by software.

Instead, the problems worth solving are “software-inclusive.” 

That means if you’re a start-up or enterprise who have SaaS as one of your business models, in 2025, your competitive advantage no longer lies in the “Software” part of your acronym. The real opportunity? That lies in broadening your definition of “Service” by ensuring it better addresses who your software serves and the context they’re using it.

The Innovation Gap

In the wake of the pandemic, most companies have adopted an inherently insular focus. Rather than asking, “How can we deliver better outcomes for our customers?” they look at innovation as internal optimizations and incremental improvements, such as:

• Maintaining existing products
• Adding incremental features
• Hitting predetermined KPIs
• Cut-to-the-bone operations

Any big swings are made through long-tail acquisition plays. Which is an expensive way to innovate.  

But herein lies the rub: if your company is struggling to grow, your software in and of itself probably isn’t the problem you need to solve. The real issue lies in the context—or lack thereof—in which you’re building your solutions.

Solving new, meaningful problems

Investigating the context in which software operates should reveal categorically different problems than software-exclusive ones. These problems are fundamentally more challenging than simply copying and pasting software onto a domain, which has been the predominant innovation strategy for the last two decades.  

Instead, success in today’s market requires more than just technical implementation. It demands a comprehensive understanding of how software can solve specific business problems within their unique contexts. This is where true market impact happens in a software-eaten world.

The Path Forward

The kinds of opportunities that generate exponential growth are always found by looking externally—they’re about making a market impact through better products and services that solve real problems. 

Whether you’re a founder pushing for your next funding round or a public company defending your market position, the key to growth lies in understanding this fundamental truth: in a world where software is everywhere, context is the new battleground.

The companies that will thrive aren’t those with the most features or the leanest operations—they’re the ones that best understand and serve their customers’ needs in context. Since needs change constantly, context changes overtime, too. So the well of innovative solutions will never run dry.