>> Any legacy vendors providing pure OCR are going to get steamrolled by these VLMs.
-OR- they can just use these APIs, and considering that they have a client base - which would prefer to not rewrite integrations to get the same result - they can get rid of most code base, replace it with llm api and increase margins by 90% and enjoy good life.
They are (or at least could easily be) adding value in form of SLA - charging money for giving guarantees on accuracy. This is both better for customer, who gets concrete guarantees and someone to shift liability to, and for the vendor, that can focus on creating techniques and systems for getting that extra % of reliability out of the LLM OCR process.
All of the above are things companies - particularly larger ones - are happy to pay for, because ORC is just a cog in the machine, and this makes it more reliable and predictable.
On top of the above, there are auxiliary value-adds such a vendor could provide - such as, being fully compliant with every EU directive and regulation that's in power, or about to be. There's plenty of those, they overlap, and no one wants to deal with it if they can outsource it to someone who already figured it out.
(And, again, will take the blame for fuckups. Being a liability sink is always a huge value-add, in any industry.)
-OR- they can just use these APIs, and considering that they have a client base - which would prefer to not rewrite integrations to get the same result - they can get rid of most code base, replace it with llm api and increase margins by 90% and enjoy good life.