zlacker

While the author is wildly overstating things, I do think AI is striking at the heart of the SaaS problem, which is the business model of "pay us $10-100+ per employee per month in perpetuity or we will hold all your data and your company's operations hostage". There is always going to be value in good software, but it is shitty vendors relying on the lock-in effect that are in danger. And good riddance.

The other issue is valuations - B2B SaaS stocks have never been rooted in reality, and the 100+ P/E ratios were always going to come down to earth at some point.

>>paxys+(OP)
Agree on the valuations. Most have come down and many have overcorrected imho.

As expensive as some of these software seem in terms of cost per seat, most of the subscription contract rarely exceed a few hundred thousand / year if even $1mm, which is drop in a bucket for many companies. (vs running on-prem servers, having staff to support them)

You'd think Atlassian would be printing money given everybody under the sun is using them, but they only make $5B in annual revenue.

I've worked at fortune 50 companies for a while and custom enterprise software is still alive and well for things that are too business specific to buy off the product for. But they're not going to be in a rush to create their own Workday, Salesforce, Jira, Figma, SAP, etc.