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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? Software is so much better than it was just 24 months ago. The post One Thing is Clear: AI Makes a Lot of Business Software Look Awfully Expensive Today. We are still learning.

AWS 294
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A Look Back at Q1 '25 Public Cloud Software Earnings

Clouded Judgement

And no, this wasn’t all because of leap year last year (that would only account for a ~3% delta at most) The Hyperscalers (AWS, Azure, Google Cloud) also declined net new adds year over year, but not by as much. The overall software universe quarterly YoY growth has come down meaningfully from highs, but has started to stabilize.

Cloud 277
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How Anthropic Rocketed to $4B ARR — And Why Your B2B Playbook May Already Be Obsolete

SaaStr

Developer Experience Drives Enterprise Sales The consumerization of enterprise software is accelerating. While not every company can replicate this exact playbook, the principles of usage-based pricing, developer-led growth, and platform thinking will increasingly apply across all software categories.

B2B 248
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Palantir’s +79% vs Bill’s -43%: The AI Divide That Defined SaaS Performance in 1H’25

SaaStr

Generic horizontal tools and traditional enterprise software struggled to gain investor confidence despite solid operational performance. 📈 Performance Summary Tables Top 10 SaaS Winners (1H’25) Bottom 10 SaaS Losers (1H’25) – Negative YTD Performance 🚀 Top 10 SaaS Gainers (1H’25) 1.

AI 211
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The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

Many mid-market software companies price with the goal of revenue maximization, negotiating for the highest possible price in each sale. There are exceptions: Oracle’s database, Tanium’s security product, Workday’s human capital management software. AWS, Twilio, Heroku, etc. Slack is a notable exception.

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Loveable and Replit Both Hit $100M ARR in Record Time. The Vibe Coding TAM: How Big Can This Market Really Get?

SaaStr

From a standing start to becoming the fastest software company in history to reach $100M ARR, beating Cursor (12 months), Wiz (18 months), and the previous record holder Deel (20 months). The economics are fundamentally different from traditional software companies. Every knowledge worker becomes a software creator.

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

SaaStr

revenue run-rate this quarter with 50% YoY growth, making them the fastest-growing infrastructure company in the public software universe. That would make them the fastest-growing infrastructure company in the [link] (public software companies) data set. TL;DR: Databricks hit a $3.7B Databricks announced they're targeting a $3.7B

AI 263