Software for software developers can be a huge focus here, but it's just scratching the surface of software for the rest of the world. I was startled when I applied for a job at a company in my city, and they told me their product was entirely API connectors for the local banks. In fact all of the companies I've worked for here have been making software for local industries! From solar installers, energy efficient lighting manufacturers, local commerce and POS systems, mechanics software, creative market places, local lead generation.
I think if you want to start a business from scratch and you're not in SV, it's worth targeting those problems instead of problems that SV/startups have. You might not get sexy VC capital, but you might be able to jumpstart with some clients up front.