SaaS

“So I think a lot of between web three and AI, a lot of SaaS will actually start being replaced because right now what SaaS is, is like one database. With a specific UI for a specific problem.”

“It will be a hybrid. So I like in my imagination right now, at least I expect like you can describe a business process, which is like, Hey, you know, when we have a new creative from like marketing department, Spin up a Twitter campaign and create me a dashboa…”

“Fundamentally, SaaS, software is all, we're all in the same information, people, paper pushing activity, right? It's like a piece of paper coming in front of you. A human, like, changed a couple bits, pushed to another human. Language model can do some form of…”

“Now the new technology happening is AI language model, and if you build more with it or just think more with it, language model wants information to be one place. Once the endpoints to be connected, so it's easier to, is it hard enough to like a conversion lan…”

“That's another really powerful part of software as a service in the era of AI, is I think you can, you know, I think the best AI companies are aligning their business model with their customers' business models charging for the outcome, you know, and I think t…”

“Like for a scaled businesses, the unit economics of your business converge at the cross sell motion. Like your new logo sales motion is super important, but as you sell your products into your ever-growing customer base, like your economics start to look like …”

“It is much easier to know what a mine is going to produce 20 years from now than it is to know what a SaaS company's sales volume is going to be 20 years from now and how it's going to be priced, right?”

“Most of the companies started in the pre-SaaS world, they failed because you could just couldn't build a turnkey product. But SaaS actually allowed you to actually build something, you know which is my insight.”

“There was a period of time where, you know, yeah, if there was no sort of SaaS application for I don't know, whatever, like, time tracking or expense management or something like that. You could build a standalone thing for that, and it would get, like, very r…”

“These artisanal software companies really can't afford to invest in a set of underlying capabilities that are ultimately what make these applications powerful for their customers. And that end up being repeated across a lot of these different application areas…”

“It also really changes how you think about the total addressable markets for some of these things, because if you're charging per seat, you're really limited by the number of people working at the company. If you're charging per conversation or per some aspect…”

“And so the difference with AI, Is the velocity of change is so high that what normally would have taken a decade, and you'd have a normal decade-long displacement cycle, is now happening in a year or two. And that's really the reason that these things are so t…”

“From a free cashflow perspective, SaaS companies are valued at the lowest they've been in, in, in years, you know, and there's a huge margin difference between You know, what those rev multiples are today and what they've been in the past. And so free cashflow…”

“We think that you can drive better win-win business outcomes with deeper alignment. And so by actually owning the companies and owning those customer relationships directly, we can drive better, better results. Software companies are wonderful. We partner with…”

“So I think the challenge of the SaaS business model is we packaged one way. We now have to learn how to unbundle these things and re-bundle in new ways and discover new business models, right?”

“That's why I think the death of SAS is a little bit overstated because why would you use tokens on a bunch of SAS stuff that you're not actually paying that much for per year relative to the outcome of those same tokens being invested against a core product or…”