"Endpoint protection, identity access and management, network security, application security, and developer tooling are separate disciplines. They have different architectures, buyers and economics. Anyone building in this space understands that instinctively, but the market didn't and that's the more interesting story."
"What we call "tech" today isn't one sector. It's a collection of deeply specialized domains, each with its own economics and competitive logic. The person qualified to value a cybersecurity company is not the same person qualified to value an AI infrastructure company."
"For decades, public markets have been structured around generalists. Portfolio managers are expected to cover enormous intellectual territory: cloud infrastructure one day, fintech the next, semiconductors the day after. That model worked when industries were broader and slower moving, however technology no longer behaves that way."
Anthropic's February 20 release of Claude Code Security, a code-scanning capability within its developer tool, triggered a significant selloff in cybersecurity stocks including CrowdStrike, Zscaler, and Okta. However, the tool did not replace endpoint protection, identity access management, or zero-trust architecture. The market reaction suggests investors conflate AI and cybersecurity as equivalent sectors. In reality, endpoint protection, identity access management, network security, application security, and developer tooling represent separate disciplines with distinct architectures, buyers, and economics. Public markets traditionally employ generalist portfolio managers covering diverse technology domains, a model that functioned when industries moved slower. Modern technology comprises specialized domains with unique competitive logic and economics, yet capital allocation decisions often rest with generalists unqualified to evaluate specialized sectors.
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