Gokul Rajaram Argues Utility-Priced Software Faces Greater AI Pressure
Gokul Rajaram endorses a view that utility-priced software companies such as Zendesk are more exposed to AI than systems of record like NetSuite, since AI agents can reduce seat counts and pricing models must shift to outcomes.
Original post · 1 min read
Invest Like the Best @InvestLikeBestGokul (@gokulr) explains why utility-based software companies like Zendesk are more exposed to AI than systems of record like NetSuite, and why public markets aren't distinguishing between the two:
"The software companies that should be the most worried right now is where they are pricing the product based on utility. Zendesk is a good example.
Instead of paying for 50 Zendesk seats, you can pay for 20 and I can have 30 AI agents sitting next to Zendesk.
For these companies you need to change your pricing model to be based on outcome. It's going to be hard for them to stay public.
The comp…

