"Software is dead. SaaSpocalypse is happening because AI is taking over!"
That's the sensational headlines often thrown against companies like Service NOW.
I agree AI **commoditization** is causing a lot of companies to no longer need SaaS shops like Service NOW. Yes also Service NOW's per seat/user **licensing model** goes against the AI shift of outcomes and code generation.
But I think NOW has some *potential* upside.
1. AI agents still need data, workflows, governance, security, orchestration layers - things that NOW specializes in.
2. NOW is like an AI control layer, they are not ignoring AI but leaning into this code enhancement tool. It favors NOW in higher-value automation not just selling more seat licenses.
3. NOW is still growing, YOY, with financials that show huge backlog and RPO growth.
Its hard to see how companies like Blackbird (a shoe maker) shot up 600% just because they said, "we're not making shoes anymore, we're going into the AI business." That is enough to tell me that the market is unusually AI-biased in all their evaluations instead of looking company fundamentals.
Are you buying into the dip?
Disclaimer, I don't own NOW but at its current price of $90 I may add to my portfolio.