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  2. What’s eating B2B SaaS?

What’s eating B2B SaaS?

Anton Gera
1 reply
An article at VentureBeat proposes a view on what's going on with B2B SaaS right now. One of the main takes is that "the explanation for the recent decline in B2B SaaS revenues and earnings growth is more mundane. Companies over-hired during COVID and have been laying off high-cost workers. Most SaaS is priced by the seat. Given there is a direct correlation between the workforce reduction and revenues, this easily equates to billions of dollars in lost recurring revenues across the industry" Agree? https://venturebeat.com/ai/whats-eating-b2b-saas-is-not-ai/

Replies

Doğa Armangil
Read it. I think it's too soon for AI to have any noticeable effect on workforce numbers. I tend to agree with what the article says. I'd say these revenue numbers are due to the recent massive job cuts in the IT sector, and to the large numbers of people who are between jobs as a result. These layoffs are most probably not due to AI automation eating jobs. Rather, I think this is indicative of the market reaching maturity for some of the big IT companies. What do you do when you no longer need to build out your offerings? That's right, you lay off people. I think time will tell what the societal effects of AI automations will be. Most likely scenario: AI will replace some of the human workforce. Less likely scenario: no workforce reduction but radical increase in economic output.
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