'The SaaS apocalypse is overrated': How Workday and other software providers plan to survive AI (www.zdnet.com)

Agentic AI is poised to disrupt enterprise software revenue models significantly, with analysts predicting that up to $234 billion in application spending could be affected by 2030. This new paradigm, termed disintermediation, suggests that AI agents will increasingly serve as the primary interface for businesses to access software services, rather than traditional applications. This shift may account for approximately 20% of SaaS spending by the end of the decade, compelling software providers to rethink their value propositions in the face of emerging AI technologies. Vendors like Workday and Freshworks are responding not by retreating, but by evolving their offerings. Workday aims to create a "trusted platform" leveraging AI to facilitate cross-business workflows while maintaining a focus on security and privacy. Meanwhile, Freshworks emphasizes the importance of its underlying systems of record, asserting its continuing relevance amid competition from AI specialists. The consensus among industry leaders is that while AI presents challenges, it also offers opportunities for those who can adapt and deliver unique capabilities that strengthen their market positions.