Ara Kharazian

This is one of the most dynamic markets we've seen, particularly for buying software, where month over month you will see large incumbents be replaced by the newcomers.

Anthropic just did that with OpenAI, now the most popular model used by businesses, according to Rampdata.

Cursor did that with GitHub Copilot.

My main take is that Setaspocalypse as a pronouncement has come way too soon and is typically not informed by actual business behavior.

You're saying that Sasspocalypse is not in the data?

I'd say quantitatively, neither aspect of Sasspocalypse is supported by actual business spend.

Neither aspect as in it's going to change the way we buy it.

Currently, it has not in any meaningful way, nor has it killed off at least the companies that are frequently mentioned.

Yeah, I mean, I think that's what's so important about this kind of work is that, you know, we live in this world, particularly in tech specifically, where everyone wants to make these big pronouncements about where the market's going to go.

Everyone seems like a pundit.

No one's really armed with any data to inform them about what's actually happening in the market.

So I have this unique job at Ramp where, you know, we see the spend data from 50,000 businesses, $100 billion of annual spend.

And so we did set out to research what is actually happening in the market

new ai companies are coming out with competitor products to a lot of prominent sas firms are we seeing any declines in the uh in adoption for those traditional sas companies are we seeing any changes in how people are buying sas and that's really where i defied sas apocalypse into two different categories right there's one that's hey are people shifting away from traditional sas over to um

over to competitors provided by the model companies.

And then number two is the way people are buying software changing or people shifting to a new model where you buy like agentic capabilities, where you buy tokens instead of paying a SaaS platform for your seats.

And right now we see that neither of those trends are happening.

It's not happening in any meaningful way.

Seat-based contracts are still about 65%, 75% of spend.

Flat platform fees about 20%, 30%.