A new search for Wall Street encouraged us to modify our note on Salesforce

For a better part of the last decade, we have heard that the software eats the world. But now it seems that AI eats software. These are call analysts at Melius Research realize on Monday because they downgraded the Adobe punctual market darling to a sales note. The note that attracts attention highlights the large -scale training effects that artificial intelligence has through the stock market - and investors must be for attention. The name of the Salesforce club is in the reticle of the changing landscape, and we cannot ignore this fact. This is a major reason why the stock and that of Atlassian and Workday company software had trouble in 2025. In the opinion of Mélus, the rise of AI is the software what was the rise of cloud computing to on -site data centers. Historically, companies would retain their own internal data centers, requiring massive investments in the equipment and engineering teams there to maintain and solve any problem. Today, however, companies can outsource this simply by jumping on the Cloud Computing train, using Amazon, Azure from Microsoft and Google Cloud from Alphabet. AWS has become the first modern Cloud service to be launched in 2006. While this transition to Cloud Computing was settling in, Melus noted that these companies have all experienced a strong contraction in their multiple remuneration prices, a classic sign that investors believe that slower growth is future. "Just when you thought the coast was clear, their multiple PEs continued to decrease more and more - from the 1920s to mid -term figures," Mélius wrote on Monday. The name of the Microsoft club was also a key software supplier for on -site servers. However, Microsoft has adjusted its strategy with the launch of Cloud Service Azure. The Cloud was a priority for CEO Satya Nadella after taking over in early 2014, and it was widely paid for investors-take a look at the stock graphs against the S&P 500. MSFT .FFX Mountain 2013-12-31 Hewlett-Packard and Dell-had not jumped on Cloud Computing and rather kept their fate of equipment suppliers. Azure is Cloud No. 2 by revenues behind AWS and finds the growth reactive thanks to the AI. Microsoft's lesson: If your commercial model is disrupted, you can always adapt, survive and prosper. However, if you are disrupted and do not adapt, the valuation that investors are ready to pay for your stock will reflect this failure. Instead, investors will move to the possession of the disruptors in question, who, in the present moment, are the AI players who grow in the software space as a service. Often abbreviated as SaaS, this business model was fashionable not so long ago. Instead, companies pay for a perpetual license to use a specific software version, SaaS companies sold their product on a subscription basis, providing a more predictable recurring source of income than investors were ready to award a higher multiple. This often involves a "siege model", where companies pay according to the number of employees using the software. Melius believes that it is under the real threat. "We believe that companies are increasingly understanding that AI tools can help reduce expensive knowledge workers with these expensive SaaS seats. In fact, OpenEx is falling as a percentage of sales between technological leaders since AI boom began. They added:" We think there will be an FOMO in all industries to reduce costs and increase their actions - SaaS AI is accelerating. "Admittedly, although this is a potential concern for Salesforce, many other technology names in the portfolio are to be benefited. Among them, Microsoft and Amazon because their cloud services allow others to take advantage of AI. Indeed, Melius analysts themselves support:" While SaaS must be avoided, "software" [such as Microsoft and Oracle] continue to see the acceleration of demand. "" Another food zone The demand is the acceleration of AI agents who do the work of the SaaS and the demand for fuel for more calculation, "added Melius. Adi is a type of investment and concentration in the AI breed - including for sales. And a company that has recognized how transformative AI can be transformative. Seats - all things are equal. Establish more quickly in the AI era, while building a new source of income focused on AI which, hopefully, can help extract more income from customer seats that remain targeted. While we seek to better understand to what extent Salesforce is disrupted, or if we can indeed adapt to the new world.