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Operational efficiency: Reduced operational costs and more targeted deployment.
Faster ROI: Clearly defined use cases enable quicker and more predictable revenue streams.
Disadvantages revolve around potential disruption—vertical solutions are more vulnerable to rapid technological shifts, especially with emerging capabilities like expanded context windows and large action models. Their lifetime value may be shorter, necessitating continuous innovation to stay relevant.
Strategic Implications for Startups
Rean emphasizes that success in this space depends largely on company strategy, timing, and resources. Key considerations include: