Preeti
The market cap of public SaaS companies has more than doubled since 2018, reaching over $1.7 trillion despite a significant correction in 2022. The idea of the end of software or SaaS is often due to a narrow definition of software, with the evolution of Software-as-a-Service marking a shift in the industry. Arguments against the future of SaaS include increased competition, limited differentiation, and low margins, but the importance of product and technology innovation remains crucial. While it may be easier to build basic SaaS applications now, entrepreneurs continue to find new ways to differentiate and innovate. AI is also changing the landscape of software development, but the best teams will still find ways to stand out.
There are concerns that SaaS metrics are well understood, leading to limited returns for investors, but subjective factors and market views play a significant role in valuations. The predictability of SaaS companies has led some to believe they can be financed with debt, but the industry still faces uncertainty and challenges. AI is reshaping software development, with arguments that it may lead to hyper-competitive markets or a shift towards custom software solutions. However, the need for specialized solutions and the complexity of certain industries may limit the impact of foundational models. Overall, the death of software is seen as exaggerated, with AI enhancing the value and importance of software rather than diminishing it.
Source link
Source link: https://medium.com/point-nine-news/erumors-of-the-death-of-software-are-greatly-exaggerated-5a5dc3a84ecc?source=rss——artificial_intelligence-5
GIPHY App Key not set. Please check settings