The Future of Enterprise Software

As we stand on the brink of a new era in technology, it's clear that the landscape of enterprise software is undergoing seismic changes. These shifts are not just incremental; they are transformative, reshaping how we build, manage, and conceptualize software for businesses.

The Rise of AI Agents

One of the most significant developments we're witnessing is the rise of AI agents. These agents are increasingly taking over tasks that once required a human touch. From customer service to complex data analysis, AI agents are on their way to becoming the backbone of enterprise software. This isn’t a distant future—it's happening now, and the pace is only accelerating. For example, Zendesk is already leveraging AI agents for the automated resolution of customer support tickets.

The Evolution of Engineering Roles

As AI takes on more responsibilities, the role of engineers is evolving. While traditional coding skills remain important, they are no longer the primary asset engineers bring to the table. Instead, the focus is shifting toward AI engineering, where the key tasks involve training, refining, and collaborating with AI agents. This transition will require engineers to acquire new skills and adapt to new methodologies. Looking further ahead, we'll all become generalist AI workers, blurring the lines between traditional roles.

The Importance of Business Metrics

In this new landscape, understanding and influencing business metrics is becoming essential for engineers. It's no longer sufficient to build software that merely functions; it must drive tangible business outcomes. Engineers will need to familiarize themselves with business terminology and understand how their work impacts metrics like revenue, customer acquisition, and operational efficiency.

Unpredictable Costs and Revenue

With the integration of AI and the evolution of the workforce, the costs and revenue for enterprise software companies are becoming more unpredictable. Traditional pricing models, such as seat-based pricing, are quickly becoming obsolete. Companies will need to adopt more flexible and responsive pricing strategies that can adapt to the fluctuating demands of AI-driven environments. Tomasz Tunguz recently wrote an insightful piece on how AI agents are set to change software pricing.

Big Opportunities Ahead

These changes present significant opportunities for new players to facilitate the transition to this new world. A few areas that hold particular promise include:

1. Upskilling and Training Engineers: Helping engineers transition to AI-focused roles.
2. AI Integration Platforms: Creating platforms that enable seamless AI integration into existing business systems.
3. Flexible Pricing Models: Designing and implementing adaptable pricing models (such as usage-based pricing) that respond to unpredictable costs and revenues.
4. Accessible Business Metrics: Making business metrics accessible and actionable across all teams.

The future of enterprise software is indeed exciting, but it challenges us to rethink how we build and manage technology.