AI will make closed source software obsolete

Generative AI is democratizing knowledge to the point were closed source software will become medieval. I may be wrong but here is my rant on why I think the days of closed source software are counted.

By
Diego Menchaca
Dec 22, 2024
2
 min read
Share:

AI will make closed source software obsolete

Generative AI is democratizing knowledge to the point were closed source software will become medieval. I may be wrong but here is my rant on why I think the days of closed source software are counted.

Diego Menchaca
Dec 22, 2024
2
 min read
Share:

AI agents like Bolt, Replit and Lovable have made it possible to create feature-rich web applications without writing a single line of code.

This was a dream scenario for a non-technical founder like me. It was science-fiction 10 years ago.

Instead of buying or subscribing to a software you can now build your own version, run it on a cloud server and off you go.

Using Bolt I built HueWave.co a minimalistic color palette generator.

For years I used Coolors.co to generate color palettes and actually paid for it but now I could build my own color palette generator.

HueWave.co, my minimalistic color palette generator.

Open source solutions with explosive growth

In the last 5 years we've seen an explosive growth of open source B2B solutions.

The business model for open source platforms is to offer a cloud option on a subscription basis and the option for clients to self-host for free.

It takes conviction to build open source. I admire the founders that have the gonads to this.

Here are 5 audacious companies that are championing this model:

How we will buy software in the future

Today SaaS companies can still be profitable selling closed source solutions but in a few years it will be unsustainable.

AI agents will be getting better by the day. In a few years, or perhaps months, anyone–including a 12 and a 80 year old–will be able to build the software they need from a simple prompt.

They will be able to type "Build a clone of Hubspot" and in front of their eyes they will have a perfectly equivalent of Hubspot's CRM, running on their own cloud server.

The source code and user interface will no longer be the reason we choose one tool over another.

All source code will be either publicly available or easily generated.

Considering this new scenario where software is extremely commoditized, buying software will be like choosing what football club we want to support. We will simply choose the one we feel identified with it.

Our decision to buy will be completely irrational. Like the hormonal response of a hooligan cheering on their favorite football club. They could scream off the top of their longs for Real Madrid, but they may choose to do so for Barcelona.

The future of closed source solutions

I strongly believe that days of closed source software are counted. Companies will have no other option but to make their source code public or disappear into the abyss.

For buyers we will see ourselves more empowered and protected. We will live in a world where the cost of generating the clone to a software we need will be relative to a cup of coffee.

As for brands, their values will be the only thing keeping them alive.

I may be completely wrong and laugh when I read this again in 10 years for how wrong I was. Time will tell.

In the meantime, here is the color palette generator I built, free to clone, enjoy 🙌 https://github.com/dmenchaca/huewave

Diego Menchaca
Product Designer
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