SaaS is inflated balloon, AI is the pin popping it: Vembu as Anthropic sparks IT sell-off

Zoho founder Sridhar Vembu said AI is the "pin" that's popping the inflated balloon of SaaS (software-as-a-service) companies built on unsustainable business models. He criticised the industry for spending more on sales and marketing than on engineering and product development. This comes after a significant sell-off in the IT stock market due to Anthropic's 11 new open-source plugins.