The Great SaaS Meltdown: AI Workflows Disrupting Enterprise

Artificial Intelligence

The Fourth Industrial Revolution

Jerome Cody

·9 months ago

shared a link post in group #Artificial Intelligence

The Great SaaS Meltdown has started and there’s no going back… A new AI-oriented workflow is coming… the great SaaS meltdown has started.

For most of the past two decades, enterprise software benefited from a remarkably stable economic story. Software was expensive to build. Switching costs were high. Data lived in proprietary systems.

#Artificial Intelligence is now testing every part of that logic at once, and the logic is failing

#The Most Important Thing 

https://www.forbes.com/si..

www.forbes.com

$300 Billion Evaporated. The SaaS -Pocalypse Has Begun.

AI didn’t kill software. It broke the SaaS growth story. $300B vanished as markets repriced legacy models and shifted toward agent-driven, outcome-based economics.

Tasia
Forget the SaaSpocalypse! It's a SaaS renaissance (SaaSaissance, anyone?). Shares of Salesforce rocketed 23% on Thursday, leading a recovery for many of the most beaten-down software stocks, including ServiceNow, Figma and Asana, after Salesforce reported upbeat July-quarter earnings on Wednesday night. The rally signaled a striking change in sentiment for the sector, which has been slammed by worries about the impact of AI on traditional software. Thursday’s rally extended to cybersecurity-related stocks that hadn’t been swept up in the SaaSpocalypse, including CrowdStrike (up 20.5%) and Okta (up 29%), both of which also reported earnings on Wednesday. But the Salesforce rally was what got attention. Salesforce, one of the biggest and highest-profile software names, at one point this year was down 43% from where it finished 2025. Those ugly days may be over: It finished the day down just 4% for the year. Of course, it‘s likely that investor sentiment will change again. After all, Salesforce’s quarterly numbers weren’t that good. Revenue grew 11%, 2 points slower than for the first quarter, and if you exclude the contribution from Salesforce’s acquisition of Informatica last November, growth was only 6.4%. But Salesforce is projecting a slight pickup in the second half in organic growth, which comes from signing new business or persuading existing customers to spend more, rather than from acquisitions. And while it’s only slight, it contributed to Salesforce raising its full-year revenue projection. It’s all about expectations, of course. Investors appear to be realizing they hugely overreacted to the threat posed by AI by selling down software stocks as much as they did. Software firms are still growing, even if the rate of expansion is coming down.

Jerome Cody
Snowflake’s performance shows more companies want an Anthropic buffer. (theinformation.com/articl..)
www.theinformation.com
Snowflake Results Show Enterprises’ Desire For Anthropic Buffer
Snowflake’s strong quarterly report on Wednesday said a lot about what can go right for older software firms that sell AI tools on top of their existing products.While Anthropic, OpenAI and Cursor get

Todd Smith
Anthropic, OpenAI and other upstarts are grabbing a bigger share of corporate software budgets (theinformation.com/articl..), new data show. #Data is beautiful
www.theinformation.com
New Data Show Anthropic, OpenAI and Other Upstarts Are Eating into Software Budgets
We’ve been reporting for months about how companies are shifting some traditional software spending to Anthropic and OpenAI. New data from procurement software firm Zip provides further evidence.AI pr

Cyril
Why the SaaSpocalypse isn’t over for Workday (theinformation.com/articl..).
www.theinformation.com
Why the SaaSpocalypse Isn’t Over For Workday
AI doesn’t seem likely to completely replace enterprise apps like Workday, which companies use to store key information about employees and financial transactions. But it is putting potential constrai

Nate
Bending Spoons running massive multi-million dollar software platforms like Vimeo and Evernote with a core team of only ~60 people each is wild. Is hyper-lean post-merger integration the new blueprint for PE and public tech, or are we sacrificing long-term product innovation for short-term margins? #The Most Important Thing cloud.substack.com/p/5-in..
cloud.substack.com
5 Interesting Learnings from Bending Spoons at $2.8 Billion in Revenue: 126% Growth, 3% Organic Growth, and $1.08 Billion of ARR Bought in 37 Days
Bending Spoons is worth about $34 billion.

Embed post to a webpage :

<div data-postid="zanapor" [...] </div>