SaaS Companies: Don’t Underestimate Your Moat - Or Your Alligators
Article excerpt
By Srinivas Velamoor, Forbes Councils Member. Srinivas Velamoor, President & CEO NextGen Healthcare. Over the past two decades, software-as-a-service companies have built some of the world’s most valuable technology franchises. In 2009, Salesforce made history as the first cloud computing company to achieve $1 billion in annual revenue. This was hailed as a victory for all software-as-a-service companies, which were emerging as industry darlings. By 2018, Salesforce would exceed $10 billion in annual revenue - further evidence that SaaS was king. Of course, all kingdoms are susceptible to invaders, and SaaS is no exception. Once artificial intelligence was everywhere with the 2022 introduction of ChatGPT, companies of all sizes and even aspiring entrepreneurs with no tech background suddenly had an unprecedented ability to build software quickly. Venture capital funding for AI startups exceeded $100 billion by 2024, and many of these newcomers are still shaking up the industry in meaningful ways. While it’s true that AI is reshaping software development and lowering barriers to entry, reports of SaaS’s demise are greatly exaggerated. Headlines that herald a “SaaS-Pocalypse” or ask “Is SaaS dead?” tell just one part of the story. The SaaS companies that are here to stay are the ones who have not forgotten the value of their “moat,” to borrow a term from investing’s...
Keep reading with a free account
The rest of this article, and every signal for Salesforce, is in your free account.
Extracted from this sentence
In March 2026, the company announced an expansion of its existing partnership with Formula 1 (F1) to introduce a new fan-companion AI agent that leverages years of data and industry expertise to enhance the experience for F1’s 827 million devotees worldwide.
