SaaS, AI, and the Future of Business | Sadin on Digital

Episode 49 | AI Realities


The Big Themes:


SaaS and AI terminology clarification: Wayne
discusses the need to distinguish between various technology
terms. He points out the common misuse of terms like SaaS and AI.
He cautions against the trend of "SaaS-washing" and "AI-washing,"
where everything is labeled one or the other to generate
excitement.

SaaS and IT consumption: SaaS has brought about a paradigm
shift in how IT is consumed. Unlike traditional software releases
that could lead to delays and technical debt, SaaS allows for
continuous updates, which means users can benefit from new
features promptly. Wayne talks about the efficiency and
scalability achieved by running software in a single instance in
the cloud.

Generative artificial intelligence (GenAI)
prices: Companies should prepare for potential
"sticker shock" in the GenAI space. Users might be initially
enticed by low prices only to face higher costs later. He advises
CIOs to carefully evaluate the actual cost of GenAI queries
before making investments.



The Big Quote: “Well, first of all, when you look at somebody's
revenue jump, bear in mind, that doesn't mean everybody's getting
long-term value out of it. It means it's hyped up, and therefore
everybody's trying. So, if Microsoft is charging for their
Copilot, a $20 a month fee, and everybody signed up for the $20
times 100 million users, that's a revenue bump. That does not
mean that over the longterm, everybody's getting their $20 value.
It means we're all excited about it — we all want to try this
shiny new object."


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