| Disclosure: I'm a PM at ServiceNow. Opinions my own. High. SoR systems tend to either be where or are closely tied to wherever the work is being done. It's an incredibly disruptive thing to rip out and change all of the process and backend systems that run your business. It's why land and expand is such an effective strategy for these companies and everything is sold as an interconnected economy of scale. I'm quite a bit more bullish than OP, but I would be lying if I said I wasn't worried about the way the market has reacted and the 'new multiple' trend. There is always going to be a market for a business operating system, we just might be a similar situation to Netflix/HBO last decade, where the race was about which side could shore up their core weakness first: content engine vs. streaming platform. We're seeing the same thing happen now. Enterprise has the data, business logic, customer base and distribution but it needs to add SotA AI capabilities into the core of the product without just bolting something on. The Ai companies have the models, talent and are agile enough they can turn out demos and compelling pitches abut they're missing the enterprise data, domain specificity and being able to operate with the regulatory and compliance scaffolding that is required to operate in the enterprise. Both sides are racing toward the middle, but the problems left for the AI companies to solve are arguably the harder ones, especially when the models themselves are rapidly commoditizing or are open source. It's tough to build enterprise-grade infrastructure on top of a layer where your core differentiation is eroding. There was another comment in this thread about value moving to the agent layer. I'd push back a little on this. An agent is only useful if it has reliable, governed access to the system where the work actually happens. The SoR that builds a credible agent platform on top of its own data and workflow layer has a structural advantage over a standalone agent tryin to orchestrate across five different systems via an API. IMO the strong foundation wins out here. |