Comments - The phone company always wins - by Yoni Rechtman
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The phone company always wins
Software margins are compressing. Network effects are still the best defense Read →
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Feb 27Edited
Liked by Yoni Rechtman
Very helpful. I plug your posts into claude code with my strategy and it spits out great ideas. I have to beat claude a bit with a stick but then it's fantastic!
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love that. YoniBot
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Strong agree on aggregation vs. network effects. The moat isn't the model — it's the transaction ledger.
Your cut is right, but there's a move that changes the math entirely: applied AI inside real operating businesses. Call it the intelligence buyout. Not "AI company with a services arm." A services business where AI is the operational substrate, and every customer interaction makes the next one cheaper, faster, sharper.
Long Lake, Crescendo, Eudia, Titan MSP — they look like operating companies because they are. But every resolved HOA dispute, every closed support ticket, every contract reviewed is a training event. The marginal cost of the next customer doesn't just fall. It falls while the quality goes up. That's the compounding loop nobody else can enter by writing a check.
Coordination costs collapsed once with the internet. Agent-to-agent automation drops them again. But the real network effect forms a layer below both: in the proprietary transaction history only a live operator accumulates. Capital can buy the call center tomorrow morning. Capital cannot buy what the call center's agents learned last Tuesday at 3am.
Agents talking to agents is a new topology. Agents talking to agents on top of a decade of real-world operational judgment is the phone company. You can't write a check for it. You have to earn it, one transaction at a time.
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would love to see a nfx-rich acc version of a 2028 spec vision
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