Emerging technologies have created new business models that some organizations embrace, while others stick with established business models. We examine how this impacts location choice for new entrants. Combining agglomeration and business model research, we show that prior to the introduction of a new technology, new entrants favored locations where firms followed an established business model. However, after the introduction of new technology, this preference diminished, indicating a shift toward new business models. We combine data on the Indian software industry in Bangalore with data on H-1B visas to identify domestic firms using the outsourcing business model. Our empirical results show that locations with a large number of domestic firms using the outsourcing business model attracted entry prior to the introduction of 3G wireless spectrum. However, afterwards, this attraction significantly diminished. Our paper illustrates how business models influence agglomeration and location choice.