If you read more of Ben's writing, he talks extensively about how software companies dominate market share through network effects and vertical integration.
You don't hear him talk about economies of scale because marginal costs are negligible for software companies. Besides, network effects and vertical integration are sufficiently powerful to control the market.
> In addition, new tools and new processes for software has increased the productivity times fold, which means that you need fewer developers for new software.
There are other barriers to entry besides the cost of writing software, like product, sales, operations, and most importantly, network.
You don't hear him talk about economies of scale because marginal costs are negligible for software companies. Besides, network effects and vertical integration are sufficiently powerful to control the market.
> In addition, new tools and new processes for software has increased the productivity times fold, which means that you need fewer developers for new software.
There are other barriers to entry besides the cost of writing software, like product, sales, operations, and most importantly, network.