Greg Kajewski

Sequoia just made a bold claim: They think the next $1T company will NOT be a software company. Their take? Services will be the new software. Because SaaS companies have spent 25 years fighting over a smaller budget in comparison. For every $1 companies spend on software → they spend about $6 on services. For reference: • A company might pay $10K a year for QuickBooks. • And $120K for the accountant who closes the books. AI has completely changed that. Now, a company can sell the finished WORK instead of the tool. Here's how the 3 models compare: TRADITIONAL SAAS • The customer buys access to software, and their own team runs it. • Growth is capped by product + distribution. TRADITIONAL SERVICES • The customer buys people's time + expertise • Growth is capped by hiring. SERVICE-AS-A-SOFTWARE • The customer buys a completed piece of work. • Software handles most of the delivery, with the provider's team on decisions + exceptions. • Growth is capped by how much of the work software can do reliably. Something to keep an eye on.