A Unified Theory of Low/No Code, Middleware, and the Future of Enterprise Applications

A Unified Theory of Low/No Code, Middleware, and the Future of Enterprise Applications

The concept of platforms has become increasingly important in the world of technology and investing. Investors are looking to invest in companies that have the potential to become platforms, rather than just tools or products. But what exactly defines a platform?

In the case of Salesforce, a platform can be defined as an application that provides a set of interfaces upon which other applications can be built. Salesforce's move into the platform as a service business with Force.com allowed customers to build custom applications that are deployed and hosted on the platform, sitting on top of the Salesforce data model. This opened up a whole new world of possibilities for developers to create tailored applications that align with their organization's specific processes and workflows.

The Salesforce AppExchange further expanded the platform by allowing external developers to create their own apps to be published into the marketplace for consumption by all Salesforce customers. This marketplace of applications built by third parties has helped to expand the functionality of Salesforce across industries, geographies, and functional areas.

Salesforce has positioned itself as the system of record for businesses, with the most valuable data being related to how they sell to and serve their end customers. This system of record creates influence on all other systems within an organization, as other systems need to play well with Salesforce in order to be adopted. This gives Salesforce a unique advantage and solidifies its position as the system of record.

However, the decoupling of systems of record and systems of engagement is becoming increasingly prevalent. While data may have gravity, relying solely on the primacy of a system as the data store at the expense of user experience is risky. The future lies in finding a balance between maintaining a hold on the system of record while also creating a platform that allows for myriad systems of engagement.

Middleware plays a crucial role in connecting different applications and data sources together. As companies use hundreds of applications that are rarely useful when they exist in a vacuum, middleware becomes essential for integrating these applications into the broader company's systems, processes, and data models. Middleware provides the necessary connections to ensure that all applications work together seamlessly.

Salesforce's acquisition of Mulesoft, a leader in middleware, demonstrates the importance of owning this layer in the technology stack. By owning the middleware layers, Salesforce can export its data model to every other system of record that the customer has adopted. This gives Salesforce a say in how every aspect of a customer's business is viewed and creates additional value and increased costs to switch.

The rise of low-code and no-code development platforms further empowers users to build their own applications and workflows. These platforms provide a semi-opinionated UX customization layer on top of the underlying database, allowing users to build applications that align with their specific use cases. This shift towards endless customization of enterprise applications reflects the changing expectations of businesses, who seek applications that suit their specific business and mental models.

Email newsletters have also seen a resurgence in popularity, particularly paid newsletters. While ad revenue on the web requires more traffic and more writing than any single person can produce, paying for an email is easier. Substack, a platform that made publishing and charging for newsletters easy, solved this problem by handling the technical aspects of publishing and charging. It provides a user-facing brand with real-estate for recommendations and discovery, making it easier for writers to find an audience.

However, as Substack fills up with more content, the dynamics change. The question of what happens when email fills up becomes crucial for Substack's own reader. Will it be a network or a tool? Will users be able to take their list and leave? These questions define the true meaning of Substack's product and its relationship with its users.

In conclusion, the future of enterprise applications lies in finding a balance between systems of record and systems of engagement. Platforms like Salesforce provide a foundation for building custom applications and extending functionality, while middleware connects different applications and data sources together. Low-code and no-code development platforms empower users to customize their applications and workflows. Meanwhile, the rise of paid newsletters demonstrates the value of tangible content delivered directly to users' inboxes. By understanding the importance of these components and finding ways to incorporate them effectively, businesses can stay ahead in the ever-evolving landscape of enterprise applications.

Actionable Advice:

1. Embrace the power of platforms: Invest in companies that have the potential to become platforms, as they provide a set of interfaces upon which other applications can be built. This allows for extension and customization on top of the data models defined in the core platform application.

2. Prioritize user experience: While data may have gravity, focusing solely on the system of record at the expense of user experience is risky. Find a balance between maintaining a hold on the system of record and creating a platform that allows for myriad systems of engagement.

3. Leverage low-code and no-code development platforms: Empower users to build their own applications and workflows with low-code and no-code development platforms. This allows for endless customization of enterprise applications, catering to specific business and mental models.

By following these actionable advice, businesses can adapt to the changing landscape of enterprise applications and stay ahead of the competition.