tech
The SaaSpocalypse that wasn't – how Salesforce, Booking and IBM are thriving with AI
The apocryphal quip attributed to Mark Twain, “the rumors of my death are greatly exaggerated,” rings true for certain companies in the software space amidst widespread but premature fears of AI-driven obsolescence.
TL;DR
- The "SaaSpocalypse" narrative, predicting the demise of SaaS companies due to AI, is largely exaggerated and premature.
- Investors have wrongly punished companies that are actually set to benefit from AI, such as Salesforce, Booking Holdings, and IBM.
- Salesforce's vast customer data acts as a competitive moat, making it essential for AI agents, while its Agentforce platform is rapidly growing.
- Booking Holdings, a transaction platform rather than just a search engine, handles payments and disputes, a role AI platforms have avoided, securing its market position.
- IBM's consulting business is boosted by AI, accounting for half of new signings, and its Red Hat software is crucial for running AI agents across different platforms.
- These companies possess unique assets – data, platforms, and infrastructure – that AI agents cannot operate without, shifting power back to them in the AI era.