All-In Breakdown

SaaS Industry Slowdown

Topic

A potential cooling off in the Software-as-a-Service market, indicated by Salesforce's poor earnings report and weak guidance. This is attributed to macroeconomic factors and the disruptive impact of AI.

First Mentioned

10/12/2025, 5:46:33 AM

Last Updated

10/12/2025, 5:48:48 AM

Research Retrieved

10/12/2025, 5:48:49 AM

Summary

The Software as a Service (SaaS) industry is experiencing a notable slowdown, a trend primarily influenced by a broader macroeconomic downturn and the disruptive impact of Generative AI. This instability was prominently highlighted by a significant 20% stock drop for Salesforce, a leading SaaS provider, which sparked discussions about a potential 'AI Correction'. The high costs associated with developing and implementing AI infrastructure are identified as a key risk, benefiting companies like Nvidia that provide the underlying technology, while simultaneously straining other firms such as Dell and contributing to signs of a broader market bubble. Surveys from 2023 already indicated that a majority of SaaS companies, specifically 64%, faced budget cuts, with marketing budgets being particularly affected in 80% of those cases, further underscoring the financial pressures within the sector. Despite these challenges, the industry is also adapting, with 50% of SaaS companies expected to integrate AI into their platforms by 2025.

Referenced in 1 Document
Research Data
Extracted Attributes
  • Market Trend

    Signs of a Market Bubble

  • Industry Type

    Software as a Service (SaaS)

  • Key Indicator

    Salesforce 20% Stock Drop

  • Primary Cause

    Macroeconomic Slowdown

  • Associated Risk

    High AI Infrastructure Costs

  • Secondary Cause

    Generative AI Disruption

  • Benefiting Companies

    Nvidia

  • Budget Cuts (Overall)

    64% of SaaS companies (in 2023 survey)

  • Budget Cuts (Marketing)

    80% of companies with cuts (in 2023 survey)

  • Future Trend (AI Integration)

    50% of SaaS companies by 2025

  • Impacted Companies (Negative)

    Salesforce, Dell

  • Churn Rate (Companies <$10M revenue)

    >20%

  • Churn Rate (Companies >$10M revenue)

    8.5%

Timeline
  • A report by Everstage and RevOps Co-op, based on a survey of over 100 SaaS companies, indicated that 64% of companies experienced budget cuts due to an economic downturn, with 80% of those cuts affecting marketing budgets. (Source: web_search_results)

    2023-XX-XX

  • It is predicted that 50% of SaaS companies will integrate AI into their platforms, enhancing functionality and efficiency. (Source: web_search_results)

    2025-XX-XX

Wikipedia
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Eldridge Industries

Eldridge Industries, LLC is an American holding company headquartered in Miami, with offices in New York City, Greenwich, Connecticut, London, and Beverly Hills. It invests in industries such as insurance, asset management, technology, sports, media, real estate, and the consumer sector.

Web Search Results
  • 2023 Report: The Impact of an Economic Downturn on the SaaS ...

    # 2023 Report: The Impact of an Economic Downturn on the SaaS Industry ## RevOps Co-op partner Everstage surveyed over 100 SaaS companies to better understand the impact of an economic downturn on their business, and what strategies to deploy to help weather the storm. Everstage and RevOps Co-op surveyed 100+ SaaS companies to determine the impact of the economic downturn on their business, and highlight strategies that can be used to weather the storm. Per our survey, 64% of companies responded saying they had a budget cut. Out of these, 80% of respondents saw their marketing budgets cut, which seems at odds with the fact that paid ads as a channel seems the least impacted by the economic downturn.

  • Top 13 SaaS Trends That Will Disrupt 2025 & The Future

    * [Solutions](https://www.rib-software.com/en/blogs/saas-trends) * [Products](https://www.rib-software.com/en/blogs/saas-trends) * [Resources](https://www.rib-software.com/en/blogs/saas-trends) * [Solutions](https://www.rib-software.com/en/blogs/saas-trends) * [Products](https://www.rib-software.com/en/blogs/saas-trends) * [Resources](https://www.rib-software.com/en/blogs/saas-trends) * [Solutions](https://www.rib-software.com/en/blogs/saas-trends) * [Products](https://www.rib-software.com/en/blogs/saas-trends) * [Resources](https://www.rib-software.com/en/blogs/saas-trends) Luckily, industry decision-makers are realizing the value of [digital construction](https://www.rib-software.com/en/blogs/digital-construction-technology) and focusing their investments in cloud SaaS technology to boost project management from [preconstruction planning](https://www.rib-software.com/en/blogs/preconstruction-planning) to handover. * **Better cost management:**Thanks to automation, smart SaaS technologies can provide businesses with more accurate [cost estimates in construction projects](https://www.rib-software.com/en/blogs/construction-cost-estimation). In 2025 and beyond, we can expect to see SaaS emerge as one of the most powerful tools for efficient [project management in construction](https://www.rib-software.com/en/blogs/construction-project-management). The construction industry will continue to embrace the benefits of micro-SaaS in 2025 as more purpose-built solutions arise to improve [construction safety management](https://www.rib-software.com/en/blogs/construction-safety-management), efficiency, and profitability.

  • SaaS is Still On the Slowdown: What This Means for Salesforce

    * Events * Career * Salesforce News December 09, 2024How to Avoid Bad Salesforce Partners: The Three-Question Test The State of Salesforce Technical Careers in 2025 Official 2025 Dreamforce Parties and Events Guide ## Saas: What’s the Real Status? Perhaps surprisingly, Salesforce has not recently been experiencing this level of decline. McKinsey & Company reported that two-thirds of millennials expect real-time customer service, and three-quarters of all customers expect a consistent cross-channel service experience, which, at a time when budget constraints are the reality for most companies, seems unachievable without the intervention of something like AI. This layer tackles the aforementioned issues and uses preventative measures to keep users and customers safe, and is the kind of framework any strong SaaS solution should utilize.

  • The Future of SaaS: Top Trends and Predictions in 2025 and Beyond

    * [Product](https://www.custify.com/blog/future-of-saas-trends-and-predictions-2024/#) * [The Current State of the SaaS Market](https://www.custify.com/blog/future-of-saas-trends-and-predictions-2024/#the-current-state-of-the-saas-market) * [5 SaaS Predictions for 2024 and Beyond](https://www.custify.com/blog/future-of-saas-trends-and-predictions-2024/#5-saas-predictions-for-2024-and-beyond) * [Preparing for the Future: Tips for SaaS Companies](https://www.custify.com/blog/future-of-saas-trends-and-predictions-2024/#preparing-for-the-future-tips-for-saas-companies) * [Conclusion](https://www.custify.com/blog/future-of-saas-trends-and-predictions-2024/#conclusion) * [](https://www.custify.com/blog/future-of-saas-trends-and-predictions-2024/#) * [](https://www.custify.com/blog/future-of-saas-trends-and-predictions-2024/#) * [](https://www.custify.com/blog/future-of-saas-trends-and-predictions-2024/#) ([Fortune Business Insights](https://www.fortunebusinessinsights.com/software-as-a-service-saas-market-102222), 2023) Image Source: [Fortune Business Insights](https://www.fortunebusinessinsights.com/software-as-a-service-saas-market-102222) [AI-powered tools for user experience](https://www.custify.com/blog/ai-powered-tools-user-experience/) (like chatbots and conversational AI) are the most widespread among SaaS businesses. It’s ensuring that [customers get the most out of your SaaS products or services](https://www.custify.com/blog/customer-success-vs-customer-experience-is-there-a-difference/) so that they become successful at what they do. Likewise, you can synchronize your tool with [customer success software](https://www.custify.com/), [CRM for SaaS sales](https://www.custify.com/blog/best-crm-for-saas-sales/), and other essential systems. [![Image 21: The Outstanding Customer Success Strategy Guide](blob:http://localhost/e8a57f4972516a1d3218894eabc89576)](https://www.custify.com/blog/customer-success-managing-saas-security-incidents/) ##### [The Role of Customer Success in Managing SaaS Security Incidents](https://www.custify.com/blog/customer-success-managing-saas-security-incidents/) [Ok](https://www.custify.com/blog/future-of-saas-trends-and-predictions-2024/#)

  • 111 Unmissable SaaS Statistics for 2025 - Zylo

    The SaaS industry continues to experience robust growth across global markets, transforming how businesses operate and scale. 2. **Impact of Business Size**: SaaS companies with annual revenues over $10 million experience an average churn rate of 8.5%, while smaller companies with revenues under $10 million can face much higher churn rates, often exceeding 20%​. 2. **Adoption Growth:** By 2025, 50% of SaaS companies are expected to integrate AI into their platforms, enhancing functionality and efficiency. ## SaaS Challenges: Statistics on Hurdles for Companies and Users ## SaaS Security Statistics ### SaaS Marketing Statistics ### SaaS for IT and Security 1. **Businesses use an average of 46 IT-focused SaaS applications**, including DevOps, security, and infrastructure management tools.