The SaaS Reset – LinkedIn

In late 2024, Microsoft CEO Satya Nadella made a provocative claim on a podcast: “ SaaS is dead .” A year on, the comment has taken on an ironic turn. Microsoft has since quietly cut internal sales targets for its agentic AI offerings after struggling to find sustained buyer interest. In some cases, targets have reportedly been slashed by as much as 50% —a clear signal that the company overestimated near-term demand for its new AI tools. Despite unparalleled distribution through Windows and Microsoft 365, Copilot has failed to gain the traction of consumer-facing alternatives like ChatGPT and Google Gemini , both of which enjoy stronger usage momentum and clearer user value. Microsoft’s arch-rival, Salesforce, is experiencing something similar. Executives at Salesforce have noted that enterprise trust in generative AI has begun to fray, largely because of the inherent unpredictability of LLMs. While LLMs are powerful, their probabilistic nature makes them difficult to rely on for consistent, mission-critical outcomes. In response, Salesforce is recalibrating its Agentforce strategy, reducing its dependence on generative AI in favour of more deterministic forms of automation . The goal is to improve reliability, reduce unexpected behaviour and restore customer confidence. This raises a bigger question
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