The Broken Physics of Software Growth: Why Scaling Digital Businesses Is Getting Harder

Software was supposed to be infinitely scalable—but the economics of software businesses are changing. In this episode of The CEO Growth Podcast, we explore the broken physics of software growth and why traditional assumptions about scalability, margins, customer acquisition, and recurring revenue are being challenged by AI, rising competition, changing customer expectations, and increasingly complex technology infrastructure. For years, software companies benefited from near-zero marginal distribution costs, subscription revenue, and powerful economies of scale. But modern software businesses face new pressures: rising acquisition costs, commoditization, AI-driven disruption, infrastructure expenses, customer consolidation, and shorter product lifecycles. We examine what these changes mean for SaaS companies, startups, CEOs, founders, and technology leaders—and how businesses can redesign their growth models for an economy where software advantages are no longer guaranteed. In this episode, you'll discover: Why traditional software growth assumptions are breaking down The changing economics of SaaS and recurring revenue How AI is reshaping software scalability Why customer acquisition costs can destroy growth The hidden costs behind "infinitely scalable" software How software commoditization affects competitive advantage Why traditional SaaS metrics may need to evolve How CEOs can build stronger technology business models The role of pricing, infrastructure, and operating leverage How software companies can create durable growth in the AI era Perfect for CEOs, founders, SaaS entrepreneurs, technology executives, investors, and business leaders who want to understand the changing economics of software and build scalable technology companies for the next era of growth.