Egan-Jones Report Finds Open-Source Software and AI Diminish Vendor Pricing Power

A commentary by Egan-Jones Ratings Co. warns institutional investors that open-source software coupled with AI is eroding the pricing power of proprietary software incumbents. Lowered engineering barriers allow contributors to build functional alternatives to commercial tools at unprecedented speed. Consequently, incumbent platforms face accelerating commoditization and less durable competitive moats than traditional credit models predict.