The Salesforce vs Microsoft agent debate misses the bigger picture. 🤔

Marc @Benioff just called Microsoft's Copilot "a huge disaster." @satyanadella had previously said that traditional SaaS apps will "collapse in the agent era."

But here's what's really happening in my view:

The debate between @salesforce and @Microsoft around agents reflects a deeper industry transformation. While Benioff criticizes Copilot's adoption, the real story is how both companies are racing to adapt their architectures for the genAI age.

The key metrics to watch aren't public statements about AI capabilities, but rather how successfully each company navigates:

- Maintaining margins while scaling AI features
- Evolving pricing models (Salesforce charging $2/agent conversation, i.e. per task)
- Delivering and pricing (yes) measurable customer value

Regarding the fundamental architectural debate: Nadella's point about SaaS applications potentially collapsing in the agent era aligns with my views on "System of Record Disruption" facing many SaaS applications that don't pivot. The real question isn't about who's "making the AI" (as  Benioff suggests), but rather how the entire architecture of enterprise software might be transformed.

This is what's unfolding at this moment. And it is of massive importance.

For a deeper analysis of the SaaS industry's AI transformation, check out my latest piece in the reply.

Thoughts?
#SaaS #genai #Strategy #Discontinuity