B2B Software Cyclicality

This question tests whether you understand how software businesses generate revenue and why some are more resilient than others in a downturn. In TMT interviews, candidates are often expected to explain how customer dependence, recurring contracts, and switching costs affect demand stability, renewal behavior, and cash flow predictability. Interviewers ask this to see whether you can think beyond generic industry labels and connect a company’s product to its economic sensitivity and customer lock in.