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In focus
- SaaS may be finally earning its service badge
- Why the physical world may soon be the only thing holding AI back
- M&A deals are down in Southeast Asia and up elsewhere
Hello reader,
The opening line of today’s featured article made me sit up and take notice when I first read it: “For two decades, the tech industry has been living a lie.”
That claim refers to software as a service (SaaS), the bedrock of the tech industry over that time. But as guest writer Kevin Brockland argues, the “service” part was always an overstatement.
He makes a simple but enlightening point that when something like Salesforce or Slack was sold to a customer, it was ultimately just a tool they would have to learn how to use, not a service.
But with the advancement of AI and agents in particular, he sees the industry moving toward service as software (SaS). Rather than paying for the tool, companies will pay for the outcome.
For instance, instead of buying a Microsoft Office subscription and typing out this newsletter myself, we may soon pay an agent to do it all. A scary thought for some, but one with far-reaching implications for founders, investors, and the future of work. Dive into the full story for more.
Also, we look at what two AI leaders had to say about the tech’s future in Davos and check out what led to a plunge in the value of M&A deals in Southeast Asia last year.
Peter Cowan, engagement editor
Top Story
Why SaaS is dying and service as software is rising
Image credit: Timmy Loen
Traditionally, SaaS firms have sold their products on a per-seat basis. But if companies can now price based on outcomes, that model changes dramatically. The implications for employment and investors are also significant: headcounts may shrink, even as software budgets continue to rise.
The article also offers practical pointers for founders building in the SaaS space and what they need to do to stand out to VCs like Kevin.
Spotlight
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