ZoomInfo data shows small firms dropping point solutions at rising rates

Data from ZoomInfo indicates a widening gap in the software-as-a-service (SaaS) market, driven by the rise of artificial intelligence. Analysis of 229 software categories shows that small companies are dropping point solutions—software designed for single tasks like live chat or marketing automation—at four times the rate seen last year.

In contrast, systems of record, which manage core business data such as CRM, HR, and accounting, remain more resilient. While point solutions are being discarded more frequently, the addition of new software remains flat across the market.

This shift coincides with significant market volatility, with approximately $2 trillion in software company value moving this year amid debates over AI's impact on the industry. While some firms are building custom tools to replace traditional software, others are increasing their reliance on major platforms; Salesforce reported that nine of the ten largest AI companies use Salesforce and Slack, with spending in those areas increasing by 435% over one year.