Artificial intelligence may change how businesses buy and use software, but Oracle's Larry Ellison does not believe it will make traditional software companies irrelevant. According to PTI, the company's executive chairman and chief technology officer says AI will allow software makers to offer more complete products, cutting the need for expensive customisation, complicated interfaces and installations that can take years.
Speaking at Oracle AI World, Ellison pushed back against predictions of a “SaaS apocalypse”, arguing that AI would improve business applications rather than bring the industry to an end.Oracle is betting on this approach with software designed for specific industries, including healthcare, banking, retail, hospitality and government. The company has started with healthcare, which Ellison considers particularly difficult because of the complexity of medical science and hospital operations.His argument is that businesses should no longer have to piece together different software products or pay to develop additional features to get the tools they need.
AI could help vendors deliver more complete systems that are ready to use, with less effort required from customers.Ellison also wants people to interact with software by simply asking for what they need. He recalled taking his son to hospital with a broken leg, where medical professionals had to navigate several screens to retrieve his X-rays.
Oracle says its healthcare software can also make adoption easier. According to Ellison, Oracle Health can identify a hospital's existing processes and add new capabilities, rather than requiring the organisation to undergo a lengthy installation.
He said conventional software deployments can take up to two years and cost businesses substantial amounts.“There should be no training required to use any of these applications,” Ellison said, while clarifying that professionals would still need the training required for their respective fields.What is the SaaS apocalypse, and why is AI causing concern? The term “SaaSpocalypse” refers to fears that AI could threaten the business models of software companies.
Traditionally, businesses have paid for software subscriptions to access tools for specific tasks. But increasingly capable AI assistants have raised the possibility that users could get similar work done through AI, reducing their dependence on established software products and IT service providers.These concerns intensified after Anthropic introduced Claude Cowork, which can handle tasks that previously required specialised technical work.
Investors began questioning whether established technology companies could maintain their business if AI tools made some of their products or services less necessary. The resulting sell-off wiped hundreds of billions of dollars off technology companies' market valuations.Zoho founder and chief scientist Sridhar Vembu was among those who warned that parts of the industry were vulnerable.
He argued that companies investing far more in sales and marketing than in engineering and product development were exposed to disruption from AI.Yet the latest results from Indian IT companies suggest that AI is not simply replacing existing technology businesses. TCS reported $3.1 billion in annualised AI revenue in the second quarter of FY2027, a rise of more than 19 percent from the previous quarter.
AI accounted for 10.1 percent of its total annualised revenue. Infosys also reported a 29 percent quarter-on-quarter increase in AI revenue.- Ends