The software industry is not a monolith—it's a sprawling continent of distinct city-states, each with unique economic rules and competitive forces. Forbes contributor Ben Topor introduces a new framework that maps the modern software landscape into eight archetypal 'city-states,' from infrastructure titans to vertical SaaS strongholds, challenging how investors and executives think about market positioning.
The article, published July 1, 2026, argues that traditional sector classifications (like 'enterprise software' or 'cloud computing') miss the granular dynamics that define success in today's fragmented ecosystem. Topor, a vice president at a major tech consultancy, draws on years of market analysis to propose a taxonomy that captures the 'genetic code' of software businesses.
The 'Software Continent' framework emerged from observing that companies like Microsoft, Salesforce, and Stripe share more in common with certain peers across traditional boundaries than within their own official categories. The eight city-states Topor identifies are: Infrastructure & Cloud (AWS, Azure), Developer Tools (GitHub, Datadog), Horizontal SaaS (Microsoft 365, Salesforce), Vertical SaaS (Veeva, Procore), Marketplace & Platform (Shopify, Uber), Fintech & Payments (Stripe, Square), Security (CrowdStrike, Palo Alto), and Emerging AI-Native (OpenAI, Anthropic). Each has its own 'currency'—whether data, developer mindshare, or transaction volume—and its own competitive dynamics, such as platform vs. vertical specialist battles.
Topor's analysis highlights that companies attempting to cross city-state borders often fail because they misjudge the economic logic. For example, horizontal SaaS giants struggle to replicate vertical SaaS deep domain expertise, while infrastructure players find it hard to build consumer-grade UX. The framework provides a tool for strategic decision-making: startups should identify which city-state they aim to conquer, and incumbents should defend their borders rather than overextend.
The 'Software Continent' map has implications for venture capital allocation, M&A strategy, and product roadmaps. Industry observers note that it aligns with the rise of category-defining vertical plays and the consolidation of horizontal platforms. It also explains the paradox of why some unicorns stay small while others scale—they are optimizing for the wrong city-state's rules.
Looking ahead, Topor expects the map to evolve as AI-native city-states grow in influence and perhaps split into sub-city-states. The article suggests that companies that ignore the city-state model risk strategic drift, while those that embrace it can better navigate the 'software continent's' shifting plate tectonics. Meta-analysts predict this framework will become a staple in business school curricula and boardroom discussions.
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Software Continent: The Missing Map Of The Modern Software Industry
A framework for understanding the modern software industry by mapping it into eight distinct city-states, each with its own economic logic, competitive dynamics.
Ben Topor, Contributor
Forbes
2 min read
6/10
Key Takeaways
- Ben Topor's 'Software Continent' framework identifies eight archetypal city-states: Infrastructure & Cloud, Developer Tools, Horizontal SaaS, Vertical SaaS, Marketplace & Platform, Fintech & Payments, Security, and Emerging AI-Native.
- Each city-state has a distinct 'currency'—e.g., data for AI-native firms, developer mindshare for tools, transaction volume for payments—that dictates competitive dynamics and unit economics.
- The framework argues that attempts to cross city-state borders (e.g., horizontal SaaS entering vertical SaaS) often fail due to mismatched economic logic and user expectations.
- Topor's analysis is based on decades of market observation, including the rise of vertical SaaS giants like Veeva ($35B market cap) and the dominance of platform marketplaces like Shopify.
- The 'Software Continent' map is already influencing venture capital strategy, with top-tier firms using it to avoid portfolio overlap and identify underserved city-states.
- The article predicts that AI-native city-states will rapidly fragment into sub-city-states (e.g., foundation models, AI agents, inference infrastructure) within the next 3–5 years.
- Companies that ignore the city-state model risk strategic drift, as they may compete using the wrong metrics (e.g., ARR growth where the real currency is developer enthusiasm).
Frequently Asked Questions
The Software Continent is a framework proposed by Forbes contributor Ben Topor that maps the modern software industry into eight distinct 'city-states,' each with its own economic logic, competitive dynamics, and valuation metrics. It helps investors and executives understand market positioning and strategic decisions.
The eight city-states are: Infrastructure & Cloud, Developer Tools, Horizontal SaaS, Vertical SaaS, Marketplace & Platform, Fintech & Payments, Security, and Emerging AI-Native. Each has a unique 'currency' such as data, developer mindshare, or transaction volume.
Companies often fail because they carry over the competitive logic from their home city-state—like horizontal SaaS focusing on ARR growth—into a city-state where the real currency is different, such as developer adoption or transaction throughput, leading to misaligned strategies and products.
Startups can identify which city-state their core offering belongs to, then optimize their product, pricing, and go-to-market strategy for that city-state's unique rules—such as building deep domain expertise for vertical SaaS or prioritizing ecosystem lock-in for platform plays.
Yes. The article predicts that the Emerging AI-Native city-state will fragment into sub-city-states like foundation models, AI agents, and inference infrastructure within 3–5 years, as the technology matures and competitive dynamics evolve.
Ben Topor is a Forbes contributor and a vice president at a major technology consultancy. He has decades of experience analyzing software markets and developed the Software Continent framework to help executives and investors navigate the increasingly complex industry landscape.
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