Not from what I see - what I see is software companies using services as a way to shorten time-to-value for the customer. They do this either themselves or via

Not from what I see - what I see is software companies using services as a way to shorten time-to-value for the customer. They do this either themselves or via professional services firms. To me, the services you describe are software-as-a-service - they scale well without adding more humans to the mix. Services businesses, in contrast, generally need more humans to do more work. I do think you are right that we are entering an age where the margin pressures will continue to increase. As the Amazon quote goes "your margin is my opportunity." In that world, strength accrues to the largest players - which is why AWS is so strong. I like to joke that AWS should refund money to the startup that buy booths at re:Invent only to find out AWS is rolling out a competing service (with the acknowledgement that AWS entering a space doesn't necessarily mean the end of the competing company.)