A naukri.com initiative
Insider
1w
208
Image Credit: Insider
More than 100 public software companies are getting 'squeezed' by AI, according to a new study
- AlixPartners study reveals more than 100 mid-market software companies are feeling the squeeze from AI-driven changes in enterprise software.
- Generative AI is challenging traditional SaaS models, with AI agents becoming core applications impacting mid-size companies.
- Mid-size SaaS vendors face competition from AI-native startups and tech giants like Microsoft, leading to a foundational shift in enterprise software.
- AI agents are advancing to handle complex tasks independently, potentially rendering traditional SaaS layers redundant.
- The study warns that mid-size enterprise software companies may face threats to survival in the next two years due to AI pressure.
- Sales growth for mid-market software companies has slowed significantly, with fewer companies experiencing high growth.
- AI-powered challengers with lower costs and faster cycles are undercutting mid-size software companies, while larger players integrate AI into their platforms.
- Software providers may need to rethink infrastructure and pricing strategies, as AI agents require different operational models.
- Executives are increasingly focusing on AI as a growth driver, indicating the need for transformation across business operations.
- Strategic imperatives for survival include building AI agents as core products, transforming business models, streamlining offerings, and considering M&A.
Read Full Article
12 Likes
For uninterrupted reading, download the app