"The SaaS market in 1H'25 showed clear bifurcation between companies with compelling AI differentiation (70%+ gains) and traditional enterprise software (single-digit or negative returns)"
Jason, any chance that there's correlation but not causality? For example, I'm a client of Bill.com, but default and not by choice. We've been happy clients of Divvy when they got bought bill Bill.com. Since then, we get many more weird failed transactions and customer service that leaves a lot to be desired. When I met their C-something-O in SaaStr, in a round table, I got the impression that he's very focused on everything else, besides the product and how customers like it. Maybe I'm wrong, but I think that there are other drivers for success besides AI adaptation.
And, in support of your theory, in my little business, AI-related products are growing very nicely when everything else is stagnating.
Jason, any chance that there's correlation but not causality? For example, I'm a client of Bill.com, but default and not by choice. We've been happy clients of Divvy when they got bought bill Bill.com. Since then, we get many more weird failed transactions and customer service that leaves a lot to be desired. When I met their C-something-O in SaaStr, in a round table, I got the impression that he's very focused on everything else, besides the product and how customers like it. Maybe I'm wrong, but I think that there are other drivers for success besides AI adaptation.
And, in support of your theory, in my little business, AI-related products are growing very nicely when everything else is stagnating.
So, I'm not sure.
definitely as much correlation as causation. but at a higher level, AI is consuming so much of the incremental budgets for CIOs and more.