1) People pay serious money for solutions.
2) Your competition is often clueless companies or, even better, clearly subpar manual processes or Excel spreadsheets. (Every Excel spreadsheet which has ever been emailed is a startup waiting to be born.) Nobody in the Valley will realize you exist, since they'll be too busy with mobisocialfotogames and other businesses attempting to separate jaded twenty-something's from money that they don't have and wouldn't spend if they did.
3) Most boring problems have a fascinating underbelly, if you're inclined to look for it. I knew a guy who did paper sales once. He was brimming with enthusiasm for it: he was an absolute magician who spoke the secret language of Paper. Every sheet had a character and a story, and he knew them all.