The Agentic AI Readiness Gap
83% of enterprises use generative AI daily. Only 23% are building sophisticated agents. That gap is where most AI investments will succeed or fail.
For a decade, the mobile app store model dominated digital distribution. That model is under simultaneous pressure from regulatory action, improving web technology, and developer economics. The open web is making a comeback.
For a decade, the mobile app store model dominated digital distribution. That model is under simultaneous pressure from regulatory action, improving web technology, and developer economics. The open web is making a comeback.
In 2008, the App Store launched with 500 applications. By 2024, it hosted over 1.8 million. The model Apple invented — curated software distribution through a controlled marketplace — became the dominant paradigm for mobile software, replicated by Google on Android. For most of that period, the native app was the unambiguous winner over the mobile web. That is beginning to change.
The European Union's Digital Markets Act forced Apple to allow alternative app stores and sideloading on iOS in Europe. Similar legislation is advancing in multiple jurisdictions. The antitrust logic is compelling: a company that controls the operating system, the app distribution channel, and a competing app holds a position that antitrust authorities in most markets would not tolerate in any other industry.
The capability gap between native apps and web apps has narrowed dramatically. Web applications now have access to camera and microphone, Bluetooth and USB, file system (with permission), push notifications, background sync, offline storage, and WebAssembly execution of near-native performance code.
The 15-30% commission that app stores charge on in-app purchases represents a significant margin hit for most software businesses. Combined with the overhead of maintaining separate native codebases for iOS and Android, the economics of web distribution have become increasingly attractive.
The case for native apps remains strong in specific scenarios: games requiring the lowest possible input latency, applications with deep system integration, and consumer social apps where the app store discovery mechanism itself is a meaningful distribution channel.
“The web won the document war. Now it's winning the application war. The question is what comes after applications.”
For businesses, the implications are about margin and relationship — keeping more revenue and owning the customer relationship without a platform intermediary who can change terms, remove your app, or build a competing product.
The app store model will not disappear. But its dominance over software distribution is likely to be one of the defining features of the 2010s and early 2020s rather than a permanent feature of computing. The open web, given better tooling and regulatory breathing room, tends to win over time.
A PWA is a web application that uses modern browser APIs to provide app-like capabilities: it can be installed to the home screen, work offline, receive push notifications, and access device hardware. Major examples include Twitter/X, Spotify, and Starbucks' ordering experience.
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83% of enterprises use generative AI daily. Only 23% are building sophisticated agents. That gap is where most AI investments will succeed or fail.
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