Over 100 Public Software Companies Getting ‘Squeezed’ by AI, Study Finds
According to a recent study by AlixPartners, more than 100 mid-market software companies are caught in a precarious position, getting ‘squeezed’ by both AI-native startups and major tech giants. This shift in the industry could threaten their survival in just 24 months as generative AI rapidly changes the face of enterprise software.
Key Points
- Over 100 mid-market software firms are in a challenging situation due to competition from AI-driven startups and larger tech companies.
- The shift to generative AI is reshaping enterprise software, potentially outdated traditional SaaS models.
- High-growth rates in this sector dropped drastically from 57% in 2023 to 39% in 2024, indicating a worrying trend.
- Customer loyalty is declining, evident from a decrease in median net dollar retention from 120% in 2021 to 108% in Q3 2024.
- The report by AlixPartners emphasises the urgent need for these companies to adapt to survive.
Why should I read this?
If you’re interested in the future of tech and software companies, this article is a must-read! It highlights a shift that could impact many companies you know, showing how AI is not just a tool anymore but a serious competitor. Stay ahead of the curve with insights that could reshape your understanding of the software landscape!