Stripe’s take: ‘SaaS is dead’ means model shift
“SaaS is dead” in Stripe’s framing points to a business-model transition, not an industry collapse. Co‑founder Patrick Collison has emphasized AI-native go-to-market dynamics and monetization changes reshaping software delivery. The message is adaptation and reinvention.
As reported by TechCrunch, Stripe’s 2025 letter said top AI companies on its platform reached $5 million ARR in about 24 months in 2024, versus roughly 37 months for leading SaaS firms in 2018. The same coverage noted Stripe’s payment volume rose 38% in 2024 to $1.4 trillion, with AI demand and billing adoption contributing. The letter also pushed back on dismissing new tools as mere “LLM wrappers,” arguing that many are deeply integrated, vertical solutions.
Why it matters: AI-native startups, usage-based pricing, verticalization
As reported by Business Insider, Bessemer Venture Partners introduced the Q2T3 growth benchmark after observing AI startups outpacing legacy SaaS norms, while investors cautioned about durability. “A lot of AI revenue may be experimental revenue,” said Alfred Lin, partner at Sequoia, warning that annualizing pilots can mislead.
CIO.com has argued the market is getting more hybrid, not ending; subscriptions are increasingly paired with usage-based and outcome-oriented contracts. That perspective aligns with Stripe’s thesis: vertical AI and workflow-native integration are displacing purely seat-based, horizontal models.
Immediate impact: growth vs sustainability, margins, revenue quality
The near term features a trade-off between headline ARR growth and the economics required to sustain it. As noted by the Financial Times, model training, inference, data pipelines, and infrastructure costs can compress margins even when revenue accelerates. That cost profile makes pricing architecture and workload efficiency design choices materially consequential.
At the time of this writing, Salesforce (CRM) was shown at $191.75 at the close and $181.31 after-hours, down 5.44%, based on NYSE delayed quote data. This contextual snapshot underscores that large-cap enterprise software remains sensitive to changing expectations on growth, AI monetization, and margins.
How incumbents should adapt pricing and product strategy
Adopt hybrid subscription plus usage-based pricing tied to outcomes
Blend a predictable platform subscription with calibrated consumption tiers linked to measurable outputs or cost offsets. Define unit economics up front to reflect compute intensity and data freshness. Align contracts to verifiable operational KPIs to limit “experimental” spend volatility.
Prioritize vertical AI integrations beyond simple ‘LLM wrappers’
Invest in domain-specific workflows, structured context, and compliance artifacts rather than generic chat layers. Build integrations where data provenance, auditability, and latency matter most. Emphasize embedded agents that execute tasks end-to-end inside industry systems of record.
FAQ about SaaS is dead
Is ‘SaaS is dead’ accurate, or is the market shifting toward hybrid pricing and delivery models?
It signals a shift toward hybrid, usage-aware, outcome-linked models. Legacy seat-based approaches face pressure, but the category is evolving rather than disappearing.
How fast are AI-native startups hitting ARR milestones compared with traditional SaaS companies?
AI-native startups are generally reaching early ARR thresholds faster than pre‑AI cohorts; speed varies by compute costs, retention, and contract quality.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- U.S. Treasury Proposes New Tax Relief Regulations
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Former CFO Convicted for $35M Fraudulent Crypto Investment
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- HashKey Prices IPO at High End, Raises $206 Million
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- U.S. Treasury Proposes New Tax Relief Regulations
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Former CFO Convicted for $35M Fraudulent Crypto Investment
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- HashKey Prices IPO at High End, Raises $206 Million
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- U.S. Treasury Proposes New Tax Relief Regulations
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Former CFO Convicted for $35M Fraudulent Crypto Investment
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- HashKey Prices IPO at High End, Raises $206 Million
Latest
BTC Uptrend Depends on Five-Wave Move as $71,030 Tests Potential Breakout
Press Release
Phemex Unveils AI Bot, Marking A Product Milestone of Its AI-Native Revolution
