ServiceNow, Inc.

Sacks support ×2 ▲ on 🤖 The software recession is over — net new ARR re-accelerates E189 · 2024-07-26 ▶ 7:49

Well, all the cloud service providers are doing extremely well. I mean, cloud is still the future of software, and the cloud service providers are still growing really strongly.

Chamath oppose ×2 ▲ on 🤖 The software recession is over — net new ARR re-accelerates E181 · 2024-05-31 ▶ 1:08:41

So I think what the market is voting with their dollars is that these large lumpy monolithic software companies that need big 50, 100 million dollar customers, they're not gonna find them soon

Sacks reversal ×2 ▲ on 🤖 The software recession is over — net new ARR re-accelerates E181 · 2024-05-31 ▶ 1:14:00

And I'm seeing that a bunch of SaaS companies are kind of hurting today now in the wake of this. They're down like 5%, not 20, but so I wonder if what the market is wondering is whether there's a more general slowdown that we're on the precipice of.

Friedberg support ×1 ▲ on 🤖 The software recession is over — net new ARR re-accelerates E165 · 2024-02-09 ▶ 39:03

But I don't think that the adoption of software is going to slow down. It certainly seems to be reaccelerating.

Chamath oppose ×2 ▲ on 🤖 The software recession is over — net new ARR re-accelerates E165 · 2024-02-09 ▶ 35:33

Is that we've re-baselined these businesses. So now what would have looked like just a massive miss over the last two years now looks like a beat because we've just completely reset expectations. Is it that or is it that the economy is actually expanding and we can count on some reasonable growth rates?

Jason support ×2 ▲ on 🤖 The software recession is over — net new ARR re-accelerates E165 · 2024-02-09 ▶ 37:11

With the market ripping, and you now got a really efficient company, you're like, hey, can we spend a little bit on SaaS to make the remaining employees even more productive? OK, maybe that's a reasonable discussion. And then people are playing ball in terms of negotiating prices.

Sacks support ×3 ▲ on 🤖 The software recession is over — net new ARR re-accelerates E165 · 2024-02-09 ▶ 36:49

But now we're seeing quarter over quarter growth. So growth is re-accelerating. Growth is higher than it was. So is it going to get to where it was? That probably will take some time, but it feels like the problems in the ecosystem work themselves out, and now we're back to growth again.

Sacks support ×2 ▲ on 🤖 The software recession is over — net new ARR re-accelerates E159 · 2023-12-29 ▶ 1:19:16

I do think that the whole B2B software industry definitely went through a recession. But fortunately, I think we bottomed out and are starting to see green shoots now. So things are returning to normal.

Chamath support ×2 ▲ on 🤖 The software recession is over — net new ARR re-accelerates E156 · 2023-12-08 ▶ 39:58

I think software revenues are going to rebound.

Sacks support ×3 ▲ on 🤖 The software recession is over — net new ARR re-accelerates E156 · 2023-12-08 ▶ 38:27

I think again, the software recession, I'm calling an end to the software recession.

Jason oppose ×2 ▲ on 🤖 Bottoms-up SaaS hits a growth wall — only the scaled platforms escape E113 · 2023-01-27 ▶ 26:22

So I think the marketplace will compete. And if you look at Slack itself, it's still growing the same percentage growth it did inside of Salesforce that it did as an independent company.

Friedberg oppose ×3 ▲ on 🤖 Bottoms-up SaaS hits a growth wall — only the scaled platforms escape E113 · 2023-01-27 ▶ 32:14

when it comes to software, if your product is the same as the other guy's product, maybe they deserve to win by bundling. And maybe it's okay for them to offer a discount and beat you on pricing.

Chamath support ×3 ▲ on 🤖 Bottoms-up SaaS hits a growth wall — only the scaled platforms escape E113 · 2023-01-27 ▶ 23:54

we could build the best product in the world, but if Microsoft gives it away with this other product that is quasi-essential, they'll always beat us. And there's nothing we can do about it.

Sacks support ×3 ▲ on 🤖 Bottoms-up SaaS hits a growth wall — only the scaled platforms escape E113 · 2023-01-27 ▶ 29:41

I think that this bundling behavior is a form of dumping, where in the short run, it looks like consumers are benefiting because they're getting a Zoom clone for free or a Slack clone for free. But then what happens is once they've hobbled those companies, they raise the price of the bundle.

Sacks oppose ×2 ▲ on 🤖 Bottoms-up SaaS hits a growth wall — only the scaled platforms escape E106 · 2022-12-03 ▶ 1:26:36

And what they've shown is a huge slowdown. Basically, their net new ARR that they just added in the previous quarter dropped two-thirds compared to the previous quarter.

Sacks support ×3 ▲ on 🤖 Bottoms-up SaaS hits a growth wall — only the scaled platforms escape E96 · 2022-09-17 ▶ 19:34

So basically they get you hooked on the bundle, they then use it to systematically kill or undermine a competitor and then they know you're stuck and then they raise the price. They basically have inflation of the price of the whole bundle. I think it's very anti-competitive. Actually, I think it's akin to dumping.

Chamath support ×3 ▲ on 🤖 Bottoms-up SaaS hits a growth wall — only the scaled platforms escape E96 · 2022-09-17 ▶ 17:37

So what's interesting to me is you cannot effectively compete, as it turns out, against Microsoft at any point product. And Slack I think is the best example where, you know, Microsoft Teams was fundamentally cannibalizing this business, which is what drove Slack into the arms of Salesforce.

Chamath support ×2 ▲ on 🤖 Bottoms-up SaaS hits a growth wall — only the scaled platforms escape E85 · 2022-06-30 ▶ 36:55

The easiest SaaS company to start and the one that folks, really talented investors like Sacks will fund overwhelmingly over others, are what's called bottoms up SaaS ... the unfortunate part of that growth curve is that it's pretty terminal within seven to ten years. And after that, you're forced to go to the mid market, and then eventually you're forced to go enterprise. ... Palo Alto Networks is probably the next closest one now.