Is AaaS the Evolution SaaS Never Saw Coming?
- Layak Singh
- Dec 29, 2024
- 1 min read
"The business logic is all going to AI agents." – Satya Nadella, CEO of Microsoft
In a groundbreaking insight shared during the BG Squared podcast, Microsoft CEO Satya Nadella hinted at what could be the most significant shift in enterprise software since the rise of cloud computing. According to Nadella, the era of Software as a Service (SaaS) may soon give way to AI as a Service (AaaS), driven by intelligent agents replacing traditional business applications.
The idea? Business applications today are essentially CRUD (Create, Read, Update, Delete) databases with layers of business logic. However, Nadella believes the core logic of these apps will soon migrate to AI agents, which will reshape how businesses operate and interact with data.
This raises a provocative question: Is SaaS dead, and is AaaS the next frontier?
Understanding the Shift: SaaS to AaaS
SaaS has been the backbone of digital transformation for over two decades, enabling businesses to move away from on-premises software to cloud-based, subscription-driven solutions. From CRM (Salesforce) to ERP (SAP), SaaS applications dominate every vertical.
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