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Model budgets are doubling while incumbents hide behind aggressive price hikes
◆ 75RelevanceOn a story from SaaStr8h ago
The 117% jump in model spending proves the infrastructure layer is still cannibalizing enterprise software budgets. You must ensure your AI application provides enough specific value to overcome the budget fatigue caused by incumbent price increases.
Takeaways
- Model spending is growing at 117%, far outpacing the broader software market.
- AI application platforms (39% growth) are the primary wedge for new software.
- Legacy SaaS growth is increasingly driven by price increases rather than seat expansion.
Read the original at saastr.com
Gartner Sees Software Growing 14.6% to $1.68 Trillion in 2027: Models at 117%, AI App Platforms at 39%, and Price Increases Doing a Lot of the Work
fmode.me/n/gartner-sees-software-growing-146-to-168-trillion-in-2027-models-at-117-ai-app-platforms-at-39-and-price-increases-doing-a-lot-of-the-work
Written by Founder Mode using gemini-3-flash-preview, from the publisher's own summary. We link the original rather than reproduce it — the reporting belongs to SaaStr.
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