Salesforce CEO says SaaSpocalypse won’t kill SaaS, AI agents make it stronger
Salesforce has dismissed fears of a “saapocalypse”, saying AI agents will strengthen software as a service, not weaken it. CEO Marc Benioff said businesses are now using SaaS more effectively with AI tools.
Salesforce has moved to counter growing fears that artificial intelligence could spell trouble for the software-as-a-service (SaaS) industry, arguing instead that AI agents are making SaaS products more relevant and valuable. Speaking during the company’s fourth-quarter earnings call, Salesforce CEO Marc Benioff said the narrative around the so-called “Saaspocalypse” misunderstands how businesses are actually using AI.
Salesforce’s comments came on the heels of a strong financial performance. The company reported fourth-quarter revenue of $10.7 billion, a 13 percent increase year-over-year. Annual revenue came in at $41.5 billion, up 10 percent, boosted by Salesforce’s $8 billion acquisition of data management firm Informatica last year. Net income reached $7.46 billion. Looking ahead, Salesforce forecasts revenue of $45.8 billion to $46.2 billion for the coming year, pointing to continued growth despite market uncertainty.
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Yet the figures alone have not eased investors’ concerns. SaaS stocks have come under pressure in recent weeks amid concerns that AI agents could replace traditional subscription-based software, particularly models that charge customers per employee or per seat. This fear has been dubbed the “saapocalypse”, which suggests a future where AI systems will completely obviate the need for large software licenses.
Benioff addressed the issue directly during the earnings call. “You’ve heard of the SaaSpocalypse? And this isn’t our first case. We’ve had a few of those,” he said. Later, he added, “If there is a SaaSpocalypse, it could be eaten by Sasquatch because a lot of companies are using SaaS because it has become better with agents.”
To underscore its confidence, Salesforce announced a nearly 6 percent increase in its quarterly dividend to $0.44 per share and unveiled a $50 billion share buyback program. Such moves are generally aimed at reassuring shareholders about long-term sustainability and cash generation. The company also changed the tone of its earnings calls by mixing financial commentary with customer testimonials and product demonstrations.
Benioff interviewed senior executives from SharkNinja, Wyndham Hotels & Resorts, and SaaStr, all of whom spoke positively about Salesforce’s AI-powered agent tool. What the company is basically trying to say is that rather than obviating the need for SaaS, AI agents are expanding the tasks that enterprise software can do by automating tasks that were previously manual or time-consuming.
Salesforce also introduced a new way to measure the impact of its AI agents, called Agentic Work Units (AWUs). Unlike traditional AI metrics that focus on token usage, AWU tracks whether an agent completes a concrete business task, such as updating a record or executing a workflow. “You can ask it a question and it can write a poem for you, but in the enterprise world it’s not really that valuable,” explained Patrick Stokes, president and CMO of Salesforce.
Beyond the metrics, Salesforce outlined its vision of how AI will transform enterprise software. In this model, SaaS platforms remain the system of record and control most of the technology stack, while AI models serve as interchangeable tools in the background. This view contrasts with the architectures proposed by AI-first companies, where the AI layer sits at the center and business software becomes secondary.
