Anish Acharya

I think it's a silly story.

I heard it called SaaSpocalypse today.

It's very funny.

Bloomberg is trying to get that to stick.

Look, if you look at SaaS spend today, if you look at IT spend overall, it's 8% to 12% of enterprise spend, okay?

So even if you vibe-coded your ERP and your payroll with all the kind of risks and dangers that that entails, you're going to save 8% to 12%.

You have this innovation bazooka with these models.

Why would you point it at rebuilding payroll or ERP or CRM?

You're going to take it and use it to extend your core advantage as a business, or you're going to take it to optimize the other 90% that you're not spending on software today.

So I just think that, of course, there will be secular losers.

There are specific business models that are now going to be disadvantaged.

But I think the general story that we're going to vibe code everything is flat wrong, and the whole market is oversold software.

Well, I don't know if that's what we're seeing across the board.

I looked at the data this morning, and if you look at public market SaaS companies, 75% have raised prices since ChatGPT was released.

75%.

And they've raised prices meaningfully.

The mean is 8% to 12%, but there's a large group that have raised it 25% or more.

Price is a measure of product market fit.

And if you have enormous competitive pressure, you are not raising prices.

You're typically cutting prices.