Show notes
Welcome back to the Alt Goes Mainstream podcast.We sat down with Vista Equity Partners’ Senior Managing Director, Co-Head of Flagship Fund, Monti Saroya. We were live from Berlin, which becomes the “capital of private capital” in June as private equity industry leaders make the annual pilgrimage to the city for one of the marquee private equity conferences, SuperReturn Berlin.With Prosek Partners and former Bloomberg TV journalist Deirdre Bolton as my producer, along with her team, we took over a Tiny Space cabin to hold big conversations with some of the industry’s leading alternative asset managers.Vista Equity Partners has been a pioneer in enterprise software investing. They have been at the forefront of every major technology platform shift, whether it was on-prem to cloud, the adoption of enterprise software, and now the agentification of the enterprise with AI.The $103B AUM scaled specialist software investor has dedicated its efforts to building “mission critical” enterprise software companies that organizations can’t live without.Monti has had a front-row seat in building and developing both infrastructure and software that the technology industry can’t live without. He brings to bear the perspective of someone who lived through the early days of the internet from his time at Cisco Systems and Siebel Systems. Through this lens, and drawing on his experience investing in enterprise software companies since joining Vista in 2008, Monti is able to make sense of where, how, and why AI will be adopted within the enterprise, and what it means for both operators and investors.This conversation with Monti was one of the most illuminating conversations I’ve had on AI recently. He pieced together so much of what is happening in AI today, covering:The different layers of AI adoption.Why “harness” companies can be valuable.Where AI agents are having the most impact on a business.Why open source is the next wave of the AI buildout.The Linux lesson for AI.Why Monti is so excited about the firm’s investment in SambaNova.Do “harness” companies have a moat?Why the moats for many AI companies might surprise you.Why sovereign AI is the next big thing.BioMonti Saroya joined Vista Equity Partners in 2008 and is Co-Head of the Vista Flagship Fund and sits on its Investment Committee.Additionally, Monti serves as a member of Vista’s Executive Committee, the firm’s governing and decision- making body for matters affecting its overall management and strategic direction, and Vista’s Private Equity Management Committee, the firm’s decision-making body for matters affecting Vista’s overall private equity platform.Monti is also the Co-Chief Executive Officer of VistaOne, Vista’s evergreen private equity vehicle, and serves on the Investment Committee. Monti helps lead Vista’s artificial intelligence initiatives, driving the firm’s approach to AI adoption through strategic partnerships and the deployment of AI-enabled infrastructure and capabilities across the platform and portfolio ecosystem.He currently sits on the boards of Acumatica, Allvue Systems, Avalara, Cloud Software Group, Duck Creek, Finastra, Infoblox, Playlist, Smartsheet, Solera, among others. Monti was actively involved in the firm’s investments in Apptio, Cvent (NASDAQ: CVT), Datto (formerly NYSE: MSP), Marketo, PowerSchool (formerly NYSE: PWSC), SumTotal, The ACTIVENetwork, and Transfirst, among others.Prior to Vista, Monti worked as a Senior Research Analyst for JMP Securities, where he provided research for buy-side clients on public on-demand (SaaS) companies. Monti previously worked as an Associate on the enterprise software/applications team. Before JMP, Monti worked at Siebel Systems in a sales capacity for the CRM On Demand division. Prior to Siebel, Monti worked for Cisco Systems in various operations roles.Thanks, Monti, for sharing your wisdom, expertise, and passion about AI, enterprise software, and technology transformations.Show Notes00:00 Intro: Live from SuperReturn00:10 Meet Monti Saroya00:20 Why AI Matters Now00:41 Career Origins Cisco00:57 Building Internet 1.0 01:21 Infrastructure Before Apps01:25 From Compute to Giants01:38 AI as New Buildout01:56 Internet 1.0 Lessons02:17 Change Slower Then Bigger02:48 Consumer Adoption First03:08 What We Underestimate03:26 AI Like Electricity03:41 Three Layer AI Stack04:03 Cloud Providers Layer04:15 App Layer Value Capture04:26 What Is the App Layer04:41 Software Needs Humans05:25 Agents System of Action05:53 Where Agents Impact Today06:20 Engineering Productivity Gains07:29 Augment Not Replace07:51 Rearchitecting With AI08:16 Harnesses Around Intelligence09:17 Routing Cuts Compute Cost09:26 Model Choice and Governance10:55 Enterprise Goals Drive AI11:51 Workflow Context Is Key12:47 SambaNova Compute Economics14:27 Token Subsidies Ending15:39 Open Source Next Wave16:02 Linux Lesson for AI17:03 Deploying Is the Hard Part17:40 Vista Agentic Factory18:42 Avoiding Services Trap19:05 Where Value Gets Created19:32 NeoCloud Inference Centers20:21 Harness Companies and Moats21:05 Enterprise Software Reality Check21:51 CFOs Demand ROI Metrics22:44 Word Association Game23:15 Workflow Specific Future23:48 Sovereign AI Is Coming24:24 Wrap Up and Thanks