It was the best of times, it was the worst of times—and for the software industry, which has faced continual discussions about its survival in the era of AI, it was, well, just the times. Anxiety about the fate of the traditional software industry has reawakened after a less-than-stellar week on the markets for publicly traded software companies, with investors questioning if AI can really disrupt a once-stable market. Rough week. On Jan. 30, Anthropic unveiled new plugins for Claude Cowork, its desktop agent tool, which would help automate sales, legal, finance, and marketing functions. The announcement sent Wall Street into a spiral. Shares of Thomson Reuters, ServiceNow, and Salesforce, among others, tumbled the following week. Additionally, the Wall Street Journal reported, two S&P indexes that track the performance of software and tech stocks lost almost $300 billion in market value that same week. Why SaaS fears are back.—BM |