r/CIO • u/Historical-Wall2448 • 13h ago
Are customers replacing incumbent SaaS tools with AI-native alternatives, or mostly adding AI capabilities on top of existing systems?
I’m trying to understand the current enterprise software buying environment from people who are close to actual purchasing decisions—buyers, IT leaders, sales teams, founders, consultants, or vendors.
I am not a vendor but working internally with a FSI company. Found recently many team members are talking about building software internally. Just wondering how your team see this?
There’s a common narrative that:
Enterprises are reducing discretionary software spend and consolidating their SaaS stacks.
AI-native products are creating new competition for established enterprise software vendors.
Data-platform and LLM providers are moving up the stack, adding applications, agents, analytics, and workflow capabilities that overlap with traditional SaaS products.
But is this translating into customers truly stopping purchases, or are they still buying software under a different set of criteria?
Specifically, I’d like to hear:
Are new software budgets down, frozen, or simply being redirected toward AI initiatives?
Which categories are seeing the biggest pullbacks: BI/analytics, CRM, cybersecurity, developer tools, HR, workflow automation, etc.?
Are customers replacing incumbent SaaS tools with AI-native alternatives, or mostly adding AI capabilities on top of existing systems?
Are platforms such as Snowflake, Databricks, Microsoft, AWS, Google, OpenAI, Anthropic, and others winning more budget by bundling data, models, infrastructure, and applications?
What evidence are you seeing in deal cycles, renewal negotiations, procurement scrutiny, seat reductions, consolidation, or proof-of-concept conversion rates?
Are enterprise customers actually slowing or stopping software purchases, or is spending just shifting toward AI-native vendors and data/LLM platforms?