Generative AI is instigating a significant shift in enterprise software, as outlined by AlixPartners. The study emphasizes how these AI advancements are pressuring over 100 mid-market software companies, caught between agile, AI-first startups and massive tech players like Microsoft and Salesforce. As AI agents progress from mere assistants to essential components of applications, traditional SaaS concepts are being profoundly disrupted. This evolution presents survival risks for many mid-size vendors, particularly over the next two years, urging them to innovate or face potential obsolescence.
AI agents are evolving from assistants to core applications, impacting mid-market companies.
Generative AI is reshaping enterprise software, challenging traditional SaaS models.
Mid-size SaaS vendors face pressure from AI-native startups and tech giants like Microsoft.
Many mid-size enterprise software companies will face threats to their survival over the next 24 months.
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