TAM compression
The theory that the total addressable market (TAM) for the traditional software industry will shrink dramatically as AI makes it much cheaper and easier to create and replicate software.
entitydetail.created_at
8/19/2025, 9:38:49 PM
entitydetail.last_updated
8/20/2025, 5:04:27 AM
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8/19/2025, 9:41:59 PM
Summary
TAM compression, in the context of the software industry, is a theory positing a significant reduction in the Total Addressable Market (TAM) for traditional software. This concept suggests that as Artificial Intelligence (AI) advances to make software development nearly free, the overall market value for existing software could substantially shrink. This idea was a central point of discussion among the hosts of the All-In podcast, including Jason Calacanis, Chamath Palihapitiya, and David Friedberg, with guest Aaron Levie, CEO of Box. They contrasted this view with the opposing theory of TAM expansion, which argues that AI could create new market categories, such as AI Agents, capable of automating vast amounts of human labor, thereby expanding the overall market.
Referenced in 1 Document
Research Data
Extracted Attributes
Definition
A theory suggesting a significant reduction in the Total Addressable Market (TAM) for traditional software.
Primary Cause
Artificial Intelligence (AI) making software development nearly free.
Opposing Theory
TAM expansion, driven by AI Agents automating trillions of dollars in human labor.
Discussion Context
All-In podcast, during a debate on the future of the $5 trillion Software industrial complex and SaaS industry.
Impacted Industries
Software industrial complex, SaaS industry
Timeline
- The concept of TAM compression was discussed on the All-In podcast by hosts Jason Calacanis, Chamath Palihapitiya, and David Friedberg, with guest Aaron Levie, as part of a broader conversation about the future of the $5 trillion Software industrial complex and SaaS industry in the age of AI. (Source: Related documents)
Undated
Wikipedia
View on WikipediaFractal compression
Fractal compression is a lossy compression method for digital images, based on fractals. The method is best suited for textures and natural images, relying on the fact that parts of an image often resemble other parts of the same image. Fractal algorithms convert these parts into mathematical data called "fractal codes" which are used to recreate the encoded image.
Web Search Results
- Efiling Setup - Applied Systems
The routed files are compressed in the directory structure for security reasons. When the attached files are accessed, they are uncompressed to your LOCAL temp directory and opened from there. Applied Systems recommends keeping file compression enabled. If, however, you need to access the files from outside of TAM, you can deselect this feature. See System Setup, Efiling - Encryption Off and Attachment Compression. [...] When the files are routed and placed in the directory structure, they will be moved out of the unrouted folder (or otherwise defined location from TAMGLOB.INI). Files routed from any location other than those defined will not be removed from their original locations, but only copied to the new directory structure. ## File Compression [...] You must designate the paths and directories where the attachment files will be saved. To do this, see System Setup, Efiling Tab. Attachments are saved in a default directory created on the server drive on which TAM is installed. sdrv:\attach\unrouted\ sdrv:\attach\year\monthday\sequence# (e.g., \\<servershare>\ ATTACH\2002\1015\79.jpg, or T:\ATTACH\2002\1015\79.jpg) Attachment routed and unrouted paths will fill in with the latest path saved in TAMGLOB.INI for these settings.
- Attachment Compression - Applied Systems
# Attachment Compression Use the Attachment Compression utility to decompress attachments. Note: All users must exit Applied TAM in order to run this utility, and depending on the number of users, it may take a long time to run. ## Decompress Existing Attachments Follow this workflow to decompress attachments that were previously compressed through Efiling so that you can access them outside of Applied TAM. For more information about attachment compression and Efiling, see Efiling Setup. [...] Note: Email attachments that were created under Attachments, Add, or Attach an E-mail cannot be decompressed with this utility. If you have TAM files (program files, data, images) on more than one data volume, and those volumes are not mirrored, STOP and contact Software Support for assistance. [...] The status of the attachments can be verified under Utilities > System Administrative, Log Viewer. Click the arrow. In the first drop down box, select \TAM\UTILREC.DBF. Then, click Load File. The Operator ID, when it was run, what process was selected, and what process was completed displays. ## Turn Off Compression To turn off compression for new documents being added, do the following:
- Compression (nom.tam FITS library 1.14.3-SNAPSHOT API)
`static String` `BLOCKSIZE` `static String` `BYTEPIX` `static String` `COMPRESSED_DATA_COLUMN` `static String` `GZIP_COMPRESSED_DATA_COLUMN` `static String` `NULL_PIXEL_MASK_COLUMN` `static String` `SCALE` `static String` `SMOOTH` `static String` `UNCOMPRESSED_DATA_COLUMN` `static String` `ZBLANK_COLUMN` `static String` `ZCMPTYPE_GZIP_1` `static String` `ZCMPTYPE_GZIP_2` `static String` `ZCMPTYPE_HCOMPRESS_1` `static String` `ZCMPTYPE_PLIO_1` `static String` `ZCMPTYPE_RICE_1` `static String` [...] | `ZTILEn` (optional keywords) The value of these indexed keywords (where n ranges from 1 to ZNAXIS ) shall contain a positive integer representing the number o f pixels along axis n of the compression tiles. | | `ZVALn` (optional keywords) These pairs of optional array keywords (where n is an integer index number starting with 1) supply the name and value, respectively, of any algorithm-specific parameters that are needed to compress o r uncompress the image. | [...] | `static String` | `NULL_PIXEL_MASK_COLUMN` The null pixels in integer images are flagged by a reserved BLANK value and will be preserved if a lossless compression algorithm is used. | | `static String` | `SCALE` The integer scale parameter determines the amount of compression. | | `static String` | `SMOOTH` At high compressions factors the decompressed image begins to appear blocky because of the way information is discarded. |
- [PDF] Test Data Compression and TAM Design - HAL lirmm
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