AI Is Reshaping the Cost Structure of the Software Industry
Executive Summary From Microsoft to Google, senior executives have increasingly centered their earnings discussions on token efficiency, inference costs, and overall system utilization. This shift in language points to a deeper structural change. As software usage itself begins to incur meaningful costs, the long-held SaaS assumption that higher usage naturally leads to higher margins no longer holds universally. For software companies that lack scale, bargaining power over compute resources, or structural cost advantages, heavy users