Sadin on Digital episodes explore the fast-changing and high-stakes world of digital business. Wayne Sadin focuses in particular on what CXOs and boards must do to lead their companies successfully into the Digital Age. In today’s episode, Wayne dissects the nuances of software-as-a-service (SaaS) and artificial intelligence (AI) for a deeper understanding of the future business landscape.
Episode 49 | AI Realities
The Big Themes:
- SaaS and AI terminology clarification: Wayne discusses the need to distinguish between various technology terms. He points out the common misuse of terms like SaaS and AI. He cautions against the trend of “SaaS-washing” and “AI-washing,” where everything is labeled one or the other to generate excitement.
- SaaS and IT consumption: SaaS has brought about a paradigm shift in how IT is consumed. Unlike traditional software releases that could lead to delays and technical debt, SaaS allows for continuous updates, which means users can benefit from new features promptly. Wayne talks about the efficiency and scalability achieved by running software in a single instance in the cloud.
- Generative artificial intelligence (GenAI) prices: Companies should prepare for potential “sticker shock” in the GenAI space. Users might be initially enticed by low prices only to face higher costs later. He advises CIOs to carefully evaluate the actual cost of GenAI queries before making investments.
The Big Quote: “Well, first of all, when you look at somebody’s revenue jump, bear in mind, that doesn’t mean everybody’s getting long-term value out of it. It means it’s hyped up, and therefore everybody’s trying. So, if Microsoft is charging for their Copilot, a $20 a month fee, and everybody signed up for the $20 times 100 million users, that’s a revenue bump. That does not mean that over the longterm, everybody’s getting their $20 value. It means we’re all excited about it — we all want to try this shiny new object.”
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