Source: Fortune
Summary
Fears that AI could render traditional software vendors obsolete led to a broad SaaS and cloud sell-off in February, dubbed “SaaSpocalypse.” However, experts argue that AI may actually fuel the software industry rather than gut it. By lowering barriers to writing code, AI could unleash a new wave of companies building specialized business applications. Finance leaders should expect a shift in value from standalone products to integrated ecosystems. SaaS profit margins may compress, but not because AI cannibalized the industry.
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Intuit CFO Sandeep Aujla sees the current volatility as part of a familiar cycle. Large language model providers are increasingly partnering with incumbent software companies. The relationship is less competitive than it appears. “These LLMs are not looking to work against us,” Aujla said. “They’re actually looking to work with us.” The line between disruption and evolution is getting blurrier.
Author: Evan Null
