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ARTICLE · 02 JUNE 2025

Farewell, SaaS: AI Is The Future Of Enterprise Software

AlixPartners Asia LLC
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The enterprise software industry serves as a poster child for change and innovation.

United KingdomTechnology
Burak Kiral
Burak Kiral
Michelle Miller
Michelle Miller
Mario Ribera
Mario Ribera
Yale Kwon
Yale Kwon
Eric Wobig
Eric Wobig
Satchi Mishra
Satchi Mishra
Author LinkedIn connections

The enterprise software industry serves as a poster child for change and innovation. Just a few decades ago, enterprise software solutions had to be installed manually on computers via CD-ROM drives. Then the jump to modern, Software as a service (SaaS) offerings, installed and updated remotely via the cloud, revolutionized both operations and licensee business models—but companies cannot get comfortable. And the next evolutionary segment of enterprise software is already here.

Generative artificial intelligence (GenAI) and AI agents are driving the industry's next major revolution. These innovative technologies have arrived at a time when midsize enterprise software companies are caught in a big squeeze, pressured on one side by AI-native players' driving innovation at lower costs and on the other by big tech companies' pouring billions into the AI arms race. By undergoing their own AI transformation—from selling software to selling AI-powered services—enterprise

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