Sridhar Vembu said major technology firms such as Google and Meta have grown larger and more influential than many traditional institutions, highlighting concerns around digital concentration.
The debate over Big Tech’s influence is resurfacing with renewed urgency.
Zoho founder Sridhar Vembu has warned that major technology companies now wield power that rivals — and in some cases exceeds — traditional institutions. His remarks reflect growing unease among entrepreneurs about structural concentration in global digital markets.
As AI infrastructure deepens platform dominance, scale disparities between global hyperscalers and mid-sized technology firms are widening.
Platform scale and systemic influence
Companies like Google and Meta operate at unprecedented global scale.
Their platforms shape:
- Digital advertising flows
- App distribution ecosystems
- Cloud infrastructure access
- AI model deployment
Such breadth creates network effects that are difficult for competitors to counter.
Vembu’s comments suggest that market concentration may not only affect competition, but also the distribution of technological agency.
Infrastructure dependency
Modern startups often rely on infrastructure controlled by a handful of large providers.
Cloud hosting, app marketplaces, and digital identity systems are concentrated among a few firms.
This creates strategic dependency risks.
Entrepreneurs building software products may simultaneously compete with and depend on Big Tech platforms.
Regulatory recalibration
Governments worldwide have attempted to address digital concentration through antitrust enforcement and new regulatory frameworks.
The European Union’s Digital Markets Act and U.S. antitrust investigations represent efforts to rebalance power.
However, enforcement remains complex, particularly as AI accelerates the advantages of scale.
India’s positioning dilemma
India’s technology ecosystem includes globally competitive firms like Zoho, Infosys, and TCS.
Yet domestic startups often operate within ecosystems shaped by foreign tech giants.
Balancing open market access with digital sovereignty remains a strategic policy challenge.
A structural shift, not a temporary phase
The concentration trend is not new, but AI may amplify it.
Training frontier AI models requires massive capital and compute resources, further entrenching hyperscale providers.
Vembu’s remarks underscore a broader question: can mid-sized innovators thrive in a market increasingly shaped by infrastructure oligopolies?
The answer may depend on regulatory action, technological decentralization, and new business models.
