by twieberneit | Jan 7, 2025 | Blog |
SaaS is dead! It will be replaced by agentic systems that replace coded business logic by AI agents that autonomously interact to bring said business logic to life, just smarter. Satya Nadella said it – or at least something in these lines, if I believe all the pundits around. His words lit up the Internet. And Satya Nadella being the CEO of a 3 trillion dollar company is the ultimate fount of truth and wisdom, when it comes to business applications. Is he not? So, what should we take from his statements? After all, the words of the CEO of one of the top 3 valuable companies on this Earth carry some weight. Let me start straight. I call BS! SaaS, first of all, is a delivery model of logic that also had some implications on vendors‘ business models and their approaches to pricing. For a variety of good and not so good reasons this delivery model succeeded vs. the prevalent model of on-premises software. Some of the more important reasons have been “no lock in by vendors”, “only pay for what you use”, “reduction of own infrastructure cost”. Of course, there are more. All of them being true – or not so much. One thing is for sure, SaaS led to a considerable centralization of compute resources. Hyperscalers emerged. Vendors took over the management of the application stack for their clients. It is very hard to envision that this gets reverted any time soon, even in a world with increasing trust issues and a good argument for edge computing. What SaaS is not, or only marginally, is a way...
by twieberneit | Dec 20, 2024 | Analysis, Blog |
The News On December 17, 2024, Salesforce announced Agentforce 2.0 after introducing Agentforce 1.0 during the company’s Dreamforce event. With it, it repositions Agentforce as a “Digital Labor Platform” that is capable of supplying businesses with an infinite workforce. This way, they shall be able to address internal challenges like labor shortages, fixed capacity, stalled productivity, or burnout. In addition, they increase their ability to work with increasing customer demands like no patience, their wish for personalization and empathy and with a knowledgeable expert, etc. “Agentforce 2.0 is the newest version of Agentforce and the first digital labor platform for enterprises — a complete AI system for augmenting teams with trusted, autonomous AI agents in the flow of work. This new release introduces a new library of pre-built skills and workflow integrations for rapid customization, the ability to deploy AI agents in Slack, and advancements in agentic reasoning and retrieval augmented generation (RAG) – enabling teams to scale their workforce with a custom Agentforce capable of handling complex, multi-step tasks with even more precision and accuracy.” Agentforce 2.0 comes with a library of prebuilt skills, which are jobs that digital agents can perform. These skills do not only cover Salesforce software but also cover partner software and, with the help of Mulesoft, any other system. The agent builder, that is part of Agentforce 2.0 enables the building of new agents/skills using natural language. New agents can be built using the skill library or custom logic. Agentforce 2.0 is live and will get additional capabilities throughout Q1/2025. The Bigger Picture AI has hit an inflection point. We came from rule-based...
by twieberneit | Dec 9, 2024 | Blog |
It is hard to believe but another year just flew by. It was a year that was defined by considerable hope and hype about generative technologies. It also means that another year lies ahead of us, a year that may or may not bring change. It also means that I get asked again for my outlook for CRM, CX and AI, and what are relevant industry trends to observe. As said, last year everything revolved around generative AI and I consequently looked at what’s going to happen on the front of CX and generative AI. Let’s look at how good my glass ball did work before looking at 2025. In summary, I postulated that there will be More success stories (partly right) more sophisticated use cases (partly right, although I didn’t really look at agentic AI) a flurry of more specialized models (yep) more companies starting to look at the ROI of implementations (partly right again, as there is still a lot of experimentation going on) a strong platform play going on (spot on, but this, frankly, wasn’t too hard to postulate) But what will come in 2025? What do some of the big dogs say about gen AI? As a little side note to the adoption and ROI topics, there are two interesting studies, one from the Wharton School and the Forrester Research predictions. The Wharton study basically indicates that 2024 has been a year of experimentation while 2025 will more be a year of adoption and deployment, with rather slowing growth of investment. The study authors suspect that this is a sign that companies are still looking...
by twieberneit | Dec 4, 2024 | Analysis, Blog |
The News Yesterday, December 3, 2024, Salesforce reported its Q3 / 2025 numbers. The company reported a total GAAP revenue of $9.44B US, which is a year-over-year change of eight percent and also slightly above the guidance of up to $9.36B that it gave after Q2. In addition, Salesforce raised the lower end of its full year FY25 guidance by $100M to $37.8B. What is also visible is the continued focus on operative margin and operating cash flow, which are up by 280 basis points and 29 percent, respectively. These numbers exceeded ‘market expectations’, with the corresponding impact on the Salesforce share price. “We delivered another quarter of exceptional financial performance across revenue, margin, cash flow, and cRPO,” said Marc Benioff, Chair and CEO, Salesforce. “Agentforce, our complete AI system for enterprises built into the Salesforce Platform, is at the heart of a groundbreaking transformation. The rise of autonomous AI agents is revolutionizing global labor, reshaping how industries operate and scale. With Agentforce, we’re not just witnessing the future—we’re leading it, unleashing a new era of digital labor for every business and every industry.“ “We continue to drive disciplined profitable growth with third quarter GAAP operating margin of 20.0%, up 280 basis points year-over-year, and non-GAAP operating margin of 33.1%, up 190 basis points year-over-year,” said Amy Weaver, President and CFO of Salesforce. “To date, our total capital returns have surpassed $20 billion and we remain focused on driving shareholder value.” The Bigger Picture Salesforce has managed to become the biggest vendor of enterprise software in only 25 years. This is nothing short of amazing, especially, when considering that...
by twieberneit | Oct 11, 2024 | Analysis, Blog |
The news On October 9, 2024, Zendesk held its AI Summit in New York’s Chelsea Industrial. The AI Summit is an event mainly for customers to inform themselves about what is new at Zendesk but also to network with each other. The event featured an interesting lineup of customer and partner speakers, headlined by New York Times bestselling author and podcast host Kara Swisher. My estimate is that there have been more than 250 customer representatives in attendance who not only could listen to the speakers but also get in-depth demos of Zendesk’s updated offerings, following real-life use cases. True to its name, the event centered around the use of AI, in particular bots, to increase not only efficiency, but also customer- and employee satisfaction. CEO Tom Eggememeier opened the event with an emphasis that Zendesk’s AI is built to support humans by stating that it “is designed for humans”, and Zendesk’s service solution is built to strengthen the human – AI partnership. Kara Swisher talked about the promise and peril of AI, giving the audience some food for thought on the day after Geoffrey E. Hinton, the godfather of machine learning turned AI warner got co-awarded the 2024 Nobel Prize in Physics for his “foundational discoveries and inventions that enable machine learning with artificial neural networks”. While Swisher sees the value that the use of AI can bring, she, too, warned about the hurdles that still need to be overcome, namely the concentration of power that the technology creates and its immense hunger for energy. The tie into the Zendesk story is that customer service is a prime...
by Marshall Lager | Sep 23, 2024 | Analysis, Blog, News |
Salesforce told us its agents were coming, and it was still a surprise when the agents arrived.If you’ve been conscious for the past year, you know how much news (or noise) there has been about artificial intelligence. Salesforce billed Dreamforce24 as “the largest AI event in the world.” It caught me a bit off guard when I heard Marc Benioff say it, but it probably shouldn’t have; Salesforce has invested heavily in AI for the past few years, ever since it introduced Salesforce Einstein (now Tableau CRM) in 2016. Its latest effort is Agentforce, and the company is really leaning into it.The topic of AI erputed in 2023 once ChatGPT was unleashed upon the general populace, and it’s only fair that a business would leverage the popularity of the topic. While 2024 seemed poised to be “the Year of the Copilot,” since a number of vendors introduced AI copilot apps—digital assistants that automate routine tasks—the fanfare was to be short-lived. Today, the talk is about agents, or agentic AI—AI that acts on its own to accomplish tasks and achieve goals, reaching into the knowledge stored in linked apps as necessary.Marc Benioff declared, “Agents are the third wave of AI.” It’s hard to argue against this. AI agents have great potential to increase productivity and customer satisfaction, and mark a leap forward in AI capabilities. Benioff stated that one of the goals of this year’s Dreamforce was to get 1,000 customers to deploy Agentforce, a goal which I believe they achieved. It’s too soon for there to be any tangible results that anybody can talk about, so we’ll have to...
