"The rise of generative AI is often seen as an existential threat to the SaaS model. Interfaces would disappear, software would fade away, and existing players would become irrelevant. However, new figures from Databricks paint a different picture. Rather than undermining SaaS, AI appears to be increasing its use. This week, Databricks reported a revenue run rate of $5.4 billion, a 65 percent year-on-year increase. More than a quarter of that now comes from AI-related products."
"According to Ghodsi, organizations do not replace their core systems just like that. What is changing is the way people work with software. The classic SaaS interface with menus, dashboards, and fixed workflows is gradually giving way to interaction via natural language. The underlying systems remain in place but are fading into the background. Databricks is responding to this with AI interfaces that run on top of the existing data infrastructure."
Databricks reported a $5.4 billion revenue run rate, a 65 percent year-on-year increase, with over a quarter from AI-related products. Generative AI is shifting interaction models by layering natural-language interfaces atop existing data infrastructure, enabling users to query data without query-language knowledge. Classic SaaS interfaces with menus and fixed workflows are giving way to language-based interaction while underlying systems remain intact. This democratizes tasks that previously required specialists or custom code and drives greater platform usage. The main change is skills: language interfaces lower switching barriers and create opportunities for incumbents and AI-native entrants.
Read at Techzine Global
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