- Marc Benioff says AI has created another ‘SaaSpocalypse’, just like the cloud
- Salesforce has changed direction to become an agentic AI platform
- Agentic AI could increase company revenue by 50% in four years
Salesforce CEO Marc Benioff has warned of a “SaaSpocalypse,” in which traditional software companies are threatened by AI tools, and in particular agentic AI.
This moment “is not our first” SaaSpocalypse, Benioff said, referring to previous changes such as the move from on-premises to the cloud.
However, just like with the move to the cloud, providers who choose to take the plunge and modernize could actually benefit rather than be left behind.
SaaS is now threatened by AI, not just the cloud
Speaking about Salesforce in particular, Benioff noted that AI makes its platform more valuable by acting as an operating system for AI agents, indicating that AI isn’t killing software as the term “SaaSpocalypse” suggests — it’s just rewriting it, much like it’s rewriting job roles.
But this shift comes at a cost, as Salesforce has rebuilt itself for the agentic era, and many smaller SaaS providers may struggle to turn things around that quickly.
The company has seen considerable success with its Agentic Work Units (AWU), moving away from per-seat billing to charging for tasks completed by its AI agents.
Benioff’s observations were made during the company’s most recent earnings conference call, where it was revealed that Salesforce generated quarterly revenue of $11.2 billion, up 12% year-over-year, closing the full year with revenue of $41.5 billion, an increase of 10% from the previous year.
“We rebuilt Salesforce to become the operating system for the agentic enterprise, bringing humans and agents together on a single trusted platform,” commented Benioff.
Looking ahead, Salesforce raised its fiscal 2030 revenue target to $63 billion, an increase of more than 51%, citing agentic AI as a key driver.
Follow TechRadar on Google News And add us as your favorite source to get our news, reviews and expert opinions in your feeds. Make sure to click the Follow button!
And of course you can too follow TechRadar on TikTok for news, reviews, unboxings in video form and receive regular updates from us on WhatsApp Also.
