The ‘SaaSpocalypse’ narrative continues to dominate investor outlooks, with fears that AI development is threatening the value of software companies. However, I believe that this is not a SaaSpocalypse, but instead a period of natural selection for the software industry – where the strong will thrive.
Widespread AI adoption is raising the bar, so SaaS providers must focus on delivering differentiated and highly valuable outcomes. Providers that are built on broad, undifferentiated offerings and don’t deliver clear, evolving value will soon go extinct and be replaced by simple AI solutions.
