- Marc Benioff says AI has created another “SaaSpocalypse”, just as cloud did
- 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”, whereby traditional software vendors are coming under threat from AI tools, and particularly, agentic AI.
The moment “isn’t our first” SaaSpocalypse, Benioff said, referencing previous shifts such as the move from on-prem to cloud.
However, just like the move to cloud, vendors who choose to get in on the action and modernize could actually benefit rather than being left behind.
SaaS is now under threat from AI, not just cloud
Speaking about Salesforce in particular, Benioff noted AI is actually making 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 – merely rewriting it, much like it’s rewriting job roles.
But the change has come at a cost, because Salesforce rebuilt itself for the agentic era, and many smaller SaaS providers may struggle to turn things around so quickly.
The company has seen considerable success from its Agentic Work Units (AWUs), shifting away from per-seat billing to instead charge for the tasks that its AI agents complete.
Benioff’s observations came during the company’s most recent earnings call, where it was revealed Salesforce drew in $11.2 billion in quarterly revenue, up 12% year-over-year, closing the full year with $41.5 billion in revenue, a 10% increase over the previous year.
“We’ve rebuilt Salesforce to become the operating system for the Agentic Enterprise, bringing humans and agents together on one trusted platform,” Benioff commented.
Looking ahead, Salesforce has raised its fiscal 2030 revenue target to $63 billion, marking a more than 51% increase, citing agentic AI as a key driver.
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