I think we've had an important signal in the last few days within the whole "SaaSpocalypse" narrative that isn't being talked about as much, but seems relevant. The two most emblematic cases came from Twilio and Atlassian.
On May 1st, Twilio and Atlassian delivered results far exceeding expectations and demonstrated something the market may have been underestimating: the ability of traditional B2B software companies to reinvent themselves and capture significant value in the age of AI.
And the market reacted strongly. Atlassian's shares rose by about 30% immediately after the results were released, in one of the biggest moves in the company's recent history.
Twilio shares surged more than 20% after extremely strong earnings , driven primarily by business acceleration and growing demand for products related to AI Voice and agent infrastructure.
Companies that many people already placed almost in the "legacy SaaS" category have shown accelerated growth, significant AI monetization, expanded usage, strong retention, efficiency gains, and increasing relevance within new agentic workflows.
This obviously doesn't change the main point: software is undergoing a brutal transformation.
We are migrating from a world based on seats , systems of record , dashboards , and passive workflows to an agentic, "in the work" environment, with AI performing real tasks, software capturing pieces of service, and products that are much more execution-oriented than just focused on organizing information.
Yes, many traditional software solutions will suffer. Especially commodity products, superficial tools, and solutions lacking operational depth. But perhaps the market overreacted in assuming that incumbents would be automatically destroyed.
Because companies like Atlassian, Twilio, Datadog, and others possess assets that are extremely difficult to replicate: distribution, data, context, critical workflows, deep integrations, infrastructure, top-level engineering, and years of operating extremely complex systems.
AI profoundly changes the software interface. But it doesn't automatically eliminate infrastructure, operational embedding , and domain-specific requirements.
Perhaps the “SaaSpocalypse” is evolving into something more sophisticated. Not a complete destruction of traditional software, but a major rebalancing of value.
Where fragile software suffers, platforms with operational depth can emerge even stronger in the agent age.
Geraldo Melzer is a co-founder of ABSeed.
