This podcast episode explores how Large Language Models (LLMs) are causing a shift in the Software as a Service (SaaS) business model, moving towards "services as software". Instead of selling workflow tools, companies will increasingly sell outcomes, functioning more like Business Process Outsourcers (BPOs), using AI-powered software. The discussion covers changes in pricing from seat-based to outcomes-based, a move away from product-led growth (PLG) to more enterprise sales, and the impact on cost structures and valuations. The episode also examines how this transformation creates opportunities for both incumbent service providers and software platforms, and which types of startups may thrive in this new environment, particularly those focused on vertical markets.
