“Where is AI taking us?” “Is SaaS dead?” and “Will there even be a need for software?” I hope this post puts all the changes we are experiencing into context so we can navigate (and shape) this innovation landscape together.
Having sold software for 30 years, I’ve had the privilege of experiencing the journey from on-premises software and data centers to cloud-based SaaS and now toward AI-based systems. This journey reveals a remarkably consistent theme:
– Innovation reacts to inefficiency,
– it is triggered by drastic changes in the market and
– It proceeds at a very high pace, which is uncomfortable for most of us.
To explore AI’s revolution and anticipated impact, I’ve created a chart that maps the transformation of enterprise software, from the rise of servers and virtualization to the emergence of AI-agent marketplaces. Please trace the journey with your eyes (or finger), and you will see three trends emerge that will likely shape the future of GTM:
i) Sustainable SaaS
ii) AI-Led GTM
iii) Consumption-Based Pricing
As a side note, at Winning by Design, we have started using the term “PPX” as a shorthand to describe the various forms of consumption-based pricing, e.g., Pay Per Action, Pay Per Use, and Pay Per Outcome. It allows us to simplify the shift as SaaS –> PPX.
Having said that, the next chapter in GTM appears to belong to autonomous GTM systems. These systems are AI-powered to enable durable growth from the get-go, and they are driven by PPX-based business models that will accelerate customer adoption. This is no different than subscription models did for SaaS over a decade ago vs. paying upfront perpetual software.
In this, durable growth reflects a combination of GTM Efficiency and high GRR/NRR. The latter is governed by a new First Principle known to all 3,500 Revenue Architects out there (say it with me :-): Recurring Revenue is the result of Recurring Impact.
Okay.. so where does that leave us? Well, let’s be clear: SaaS isn’t over—not even close!
Many SaaS Scaleups and Grownups will simply evolve, powered by AI, into Sustainable SaaS Scaleups and Grownups. Some will fail, some will succeed.
Meanwhile, Startups can choose to either pick Sustainable SaaS or embrace a PPX pricing strategy. And as they go to market, they can now opt for Product-Led Growth (low), AI-led growth (mid), or Human-Led Growth (high-end).
Furthermore, AI-enabled GTM motions will democratize GTM, allowing companies from across the globe to compete with the existing SaaS juggernauts. These startups must show up with innovation, as today’s buyers are more likely to side with a trusted brand.
Simply put, there’s something for everyone this holiday season. 💙 💙 💙
👉 What do you think will define the future of software?
