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One Thing is Clear: AI Makes a Lot of Business Software Look Awfully Expensive Today. Is Deflation Coming?

SaaStr

50 cents of compute for 500 dollars of value — Sam Altman (@sama) February 3, 2025 So just how much will AI remake classic B2B software? On the one hand, new AI-first entrants are rocketing to $10m ARR in a year. On the other hand, the classic leaders in SaaS have rebounded from 2024 lows both in terms of growth and market caps.

AWS 288
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Clouded Judgement - 3.28.25 - The New AI Risk Curve

Clouded Judgement

Data from Stripe (below) shows the speed at which AI native companies are growing compared to SaaS companies. Fast forward to the launch of AWS and the public cloud. Now let’s talk about the AI wave. And now, engineering and distribution (go-to-market) constraints are greatly reduced with AI.

Cloud 299
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The 40% Problem: Do Your Sales Reps Really Cover All Their Accounts? And Is AI The Answer? With Yamini Rangan, CEO HubSpot

SaaStr

The 40% Problem: How AI Will Finally Fix Sales Coverage and Customer Face Time A wake-up call from HubSpot’s CEO Yamini Rangan on why your sales team is failing 60% of their accountsand how AI will change everything There’s a brutal truth about B2B sales that most founders refuse to acknowledge.

Scale 249
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Databricks Just Caught Snowflake at $3.7B ARR. Here’s How They Did It (And What’s Next)

SaaStr

pic.twitter.com/VXSqDIuTZT — Alex Clayton (@afc) June 13, 2025 AI Fueling Unprecedented Growth Databricks just announced they’re targeting a $3.7 The AI Infrastructure Land Grab Is Real What’s driving this unprecedented growth? Every business process becomes an AI opportunity. Three things: 1. They were right.

AI 259
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The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

They use pricing as an offensive tool to reinforce their product’s value and underscore the company’s core marketing message. Startups operate in newer markets where pricing standards haven’t been set. In addition, these new markets evolve very quickly, and consequently, so must pricing.

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How Generative AI Will Turn Traditional SaaS Models On Their Head with AWS VP of Generative Builders Adam Seligman

SaaStr

Within the next 12 months, Adam Seligman, VP of Generative Builders at AWS, believes there will be an inversion of SaaS. Keep reading to learn what the four most common SaaS assumptions are, and watch Adam knock each one down with the power of generative AI. Go-to-Market is expensive and labor-intensive. What does that mean?

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Clouded Judgement 12.1.23 - Net New ARR Starts to Rebound + AWS ReInvent Recap

Clouded Judgement

Subscribe now Amazon ReInvent This week Amazon had their annual AWS ReInvent conference. Couple takeaways for me: 2024 is shaping up to be the “prototype to production” year for AI. ” AWS fully embracing the breadth over depth approach. A strong data foundation is critical for an effective AI strategy!

AWS 299