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One Thing is Clear: AI Makes a Lot of Business Software Look Awfully Expensive Today. Is Deflation Coming?

SaaStr

50 cents of compute for 500 dollars of value — Sam Altman (@sama) February 3, 2025 So just how much will AI remake classic B2B software? We are still learning. On the one hand, new AI-first entrants are rocketing to $10m ARR in a year. Driving up ACVs. But it could soon turn deflationary. That do 10x as much. Is Deflation Coming?

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The Top SaaStr Posts and Pods of the Week: CEOs Monday + Procore, YCombinator on Fundraising, The 2025 Vibe Check

SaaStr

Iconiq: Top Quartile B2B Companies Are Growing 100% at $25m ARR And Are Planning to Grow 35% Faster in 2025 #4. The 2025 SaaS Vibe Check: What Founders Need to Know Right Now with SaaStr Founder Jason Lemkin #5. How AI is Really Changing SaaS From the CEO of Procore, co-CEO of Monday and Chair of HubSpot #5. Is Deflation Coming?

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A Founder’s Guide to Building and Scaling Marketing Channels: Lessons from Datadog’s CMO and First Marketing Hire

SaaStr

And see everyone at SaaStr Annual 2025, May 13-15 in SF Bay!! At Datadog, their first focus was sponsored trade shows – specifically targeting the AWS ecosystem. Scaling Success: The Datadog Re:Invent Story Datadog’s experience with AWS Re:Invent demonstrates this approach perfectly.

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The Capex Conquest in the Cloud

Tom Tunguz

Cloud Capex in Q1 AWS $14 billion Azure $14 billion Google Cloud $12 billion These are not one-time investments, but part of a broader trend that started to occur after the introduction of GPT 3 in mid-2020 Amazon was the first to invest significantly. “Moving to AWS. 8 percentage points increased margins in a quarter is titanic.

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AI is Already Remaking SaaS. 10 Trends To Watch Right Now. And Not Fall Behind On.

SaaStr

— James McGillicuddy (@jpmcuddy) March 20, 2025 #9. at 2025 SaaStr Annual, May 13-15 in SF Bay. If your product doesnt leverage AI to improve efficiency or reduce costs, you might find yourself underpricing pressure. One Thing is Clear: AI Makes a Lot of Business Software Look Awfully Expensive Today. Is Deflation Coming? #5.

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From $1M to $3B ARR: Databricks CRO Ron Gabrisko on Scaling a Revenue Rocket Ship

SaaStr

In the latest episode of SaaStr’s CRO Confidential Series, our host Sam Blond sits down with Ron Gabrisko, CRO of Databricks , to unpack the journey from $1M in ARR to crossing $3B ARR at the end of January 2025. Because thats how their customerswho were used to AWS, Azure, and GCP pricingexpected to buy.

Scale 182
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5 Interesting Learnings from Google Cloud at $13 Billion in ARR

SaaStr

But are AWS, Azure and Google Cloud just too big for us to learn from? Google Cloud sees it hitting $760B+ in 2025. AWS vs. Azure vs. Google Cloud is one of the greatest case studies of all time. Do they “count” like the scrappy start-ups in SaaS that have now become decacorns?

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