I was talking to a buddy who works at a smaller cybersecurity company here in Arizona, and it made something really clear.
A lot of people don’t understand what enterprise software actually is.
When a big company signs a deal with CrowdStrike, Palo Alto, or Microsoft, they’re not just downloading an app. They’re signing a multi year legal contract.
That contract includes strict performance guarantees, financial penalties if things fail, compliance with government regulations, clear responsibility if there’s a breach, data protection rules, and 24/7 human support if something goes wrong.
This isn’t software you casually swap out because a new AI model shows up.
These systems are deeply embedded into how companies operate. They’re tied into legal, compliance, insurance, and risk management. Pulling them out isn’t like deleting an app, It’s the electrical grid of the building
Even if AI becomes incredible at spotting threats, it doesn’t replace the legal protection, compliance requirements, and real-world accountability that big companies have to operate under. AI just becomes another tool built into the platform an upgrade, not a replacement. And that’s exactly what we’re seeing happen.
Wall Street tends to sell first and sort out the details later.
AI isn’t killing enterprise software. It’s becoming an upgrade inside it.
The “software is dead” narrative ignores how big companies actually function. These are long term, mission critical systems that generate recurring revenue year after year.