For the last decade, the investment thesis was simple.
Buy SaaS. Avoid hardware.
The logic was that software had zero marginal costs and infinite scalability. Hardware was seen as messy. It required inventory, logistics, and capital.
But in 2025, the wind has changed.
We are seeing a massive correction in the market. Why? Because the “ease” of software has become its greatest liability.
With the rise of AI, code has become a commodity. If a competitor can clone your entire platform over a weekend using generative tools, you do not have a business. You have a feature.
The Lesson: True defensibility now lives in the physical world.
You cannot “prompt” a factory into existence. You cannot use ChatGPT to build a supply chain of high-tensile steel. You cannot automate the logistics of delivering physical security to 15 countries.
At DORIX, we call this the Physical Moat.
The companies that will win the next decade are not the ones writing the best code. They are the ones who anchor their software to a physical asset that cannot be easily replicated.
Hardware is hard. That is exactly why it is valuable.
If you want a moat that lasts, do not just build a cloud. Build a fortress.
