AI won't kill software companies, it will change how we use software: NetSuite founder

Artificial intelligence will transform how software is consumed rather than render software-as-a-service companies obsolete, according to Evan Goldberg, founder of NetSuite, who said reports about the demise of SaaS businesses are overblown.

In an exclusive interview with CNBC-TV18, Goldberg said software will increasingly operate in the background through AI agents, changing how users interact with applications but not eliminating the need for enterprise platforms.

“I think the rumours about the SaaS model completely disappearing are somewhat exaggerated,” Goldberg said. “People are going to use systems differently, but that doesn't mean they won't use them. So I'm not convinced SaaS is going the way of the dodo or the dinosaur just yet.”

The comments come amid growing concerns among investors that advances in generative AI and coding agents could undermine the traditional software business model and erode the value of SaaS companies

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Goldberg said AI would represent the next stage of evolution for enterprise software. While cloud computing removed the need for businesses to manage infrastructure and databases, AI agents would increasingly take over processes themselves.

“Before, we helped you by managing your software for you. Now we're going to take a lot of those cases where you have to use software to do things and have agents do them instead. That's really the ultimate promise — managing the processes for you, not just the software,” he said.

According to Goldberg, the real competitive advantage for established software companies lies in decades of customer relationships, domain expertise and trusted infrastructure rather than the ability to write code.

“You can write code very fast with AI. But what you can't necessarily do very fast is iterate with customers and hone the capabilities to really be what they need,” he said.

He added that secure and reliable systems built over years would continue to provide value to enterprise customers.

“We have incredible infrastructure to make sure that your data is secure, reliable and fast. That takes years to build. It's not something you can just sit down with a coding agent and say, ‘Please build this incredibly reliable, trusted system,’” Goldberg said.

The NetSuite founder also believes AI will make building companies easier, but human judgement and customer understanding will remain critical.

“Yes, you can write code really fast, but the best products still come from that deep understanding, which I truly believe comes from human-to-human interaction with customers,” he said.

Goldberg said businesses need to adopt an AI-first mindset and assume the world is changing rapidly rather than resist technological shifts.

“Companies that survive are the ones that think like startups and say, ‘Prove to me the world isn't fundamentally different,’” he said.

While AI agents are expected to do much of the routine work behind the scenes, Goldberg said creativity, experience and execution would remain essential.

“What really makes a company run is your creativity, your great ideas and executing those ideas. We're going to be able to give you the freedom, time and resources to do that much better than ever before,” he added.