imaginima/iStock/Getty Images Plus
Follow ZDNET: Add us as a preferred source on Google.
ZDNET's key takeaways
AI-native software providers will challenge traditional SaaS.
Rising AI infrastructure costs present a challenge.
More native-AI vendors mean more choices for smaller businesses.
Prepare to see more solutions from 'AI-native' software companies in the coming months and years. This trend means new interfaces, different cost considerations, and new ways of building and working with applications. Just as cloud-native vendors flooded the market a decade ago with Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) offerings, we may see a glut of new AI-based applications.
That's the word from a new study by consultant Deloitte. It's not that SaaS vendors are going away anytime soon. Right now, the top 10 SaaS providers account for more than half of the software market's capitalization. The overall market grew by 11% between 2024 and 2025, up from $3.6 trillion to $4 trillion.
Also: 90% of AI projects fail - here are 3 ways to ensure yours doesn't
But market dynamics are rapidly changing. SaaS and traditional software companies are already under pressure to replace per-license pricing with results-driven pricing.
... continue reading