The Rise of AI: A Transformative Era in Technology
According to Sridhar Vembu, chief scientist and cofounder of Zoho Corp, the AI era can be distinctly categorized into two phases: pre-DeepSeek and post-DeepSeek. He made these comments during Zoho’s annual global research analyst summit, which was livestreamed from Austin, Texas. Vembu stated, “It was assumed that Big Tech will own AI, and everyone else will pay tribute. Over $250 billion has been invested in AI; Microsoft alone put in $90 billion. But that was the BC era (big capex). Now, we are in AD — the After DeepSeek era.”
Disrupting the Tech Landscape
The Chinese startup DeepSeek has significantly shaken up the global technology market. They are known for their open-source large language models (LLMs), which are reported to be developed at a fraction of the cost compared to competitors. This shift in the AI landscape opens up new opportunities and challenges for numerous firms in the saturated software-as-a-service (SaaS) market.
Overcrowding in SaaS
Even as AI continues to gain traction, Rajesh Ganesan, CEO of ManageEngine—the enterprise IT solutions arm of Zoho Corp—warned about the ongoing saturation of the SaaS market. He explained, “The (SaaS) market was always overcrowded—take any function, you have thousands of alternatives.” Many companies have focused on meager differentiators, often seeking quick exits rather than fostering a sustainable long-term vision.
The Need for Differentiation
As the prevalence of AI technologies grows, Ganesan predicts that companies must establish their own unique AI narratives. “Now, with AI coming in, we will see the same pattern repeating; all companies will have some sort of an AI story. How each company differentiates itself remains to be seen,” he noted.
Zoho’s Commitment to AI
During the summit, Zoho announced the introduction of agentic AI capabilities across its platform. This will enable enterprises to access, build, and distribute intelligent, autonomous digital agents. Vembu emphasized that these developments would leverage Zoho’s strong engineering expertise, its own data centers, and a shared data model.
The Future of Programming
One of Vembu’s primary interests involves boosting programmer productivity through AI. He highlighted, “Particularly UI programmer productivity. Particularly low code and no code, that is where we see maximum changes happening…There will be 10X to 100X productivity gains for programmers using AI.”
Investments in AI Development
While specifics regarding investment amounts were not disclosed, Ganesan mentioned that Zoho will focus its energy and resources on developing agentic AI capabilities. Initial efforts will center around select use cases and pilot projects with customers.
Addressing Cost Challenges
Historically, cloud infrastructure has constituted a significant percentage of SaaS companies’ expenses. Ganesan pointed out that transitioning into AI-centric businesses will require navigating the substantial costs associated with AI technology.
Customer Negotiations on Pricing
With the influx of billions into AI investments, a shift in vendor-client dynamics is anticipated. Ganesan observed that customers are beginning to renegotiate costs in light of the decreasing expenses related to AI deployments. “AI is not something you can claim a special premium price for. It is starting to become a basic feature,” he emphasized.
Inspiration from DeepSeek
DeepSeek’s ability to produce cost-effective, computationally efficient AI solutions serves as a source of inspiration for Zoho. Ganesan stated that Zoho is committed to developing agentic technology in-house while also offering businesses the choice of various models to deploy.
Upcoming AI Agents
Excitingly, Zoho plans to roll out several pre-built, task-specific agents in the coming months, including account manager agents, sales development representative (SDR) agents, HR agents, customer support agents, IT help desk agents, and sales coach agents.
Conclusion
The introduction of AI technologies presents both opportunities and challenges for businesses. As companies like Zoho navigate this evolving landscape, the focus on differentiation, cost management, and the ability to deliver rich AI capabilities will determine their success in this new era.
Q&A Section
1. What is the significance of the term “After DeepSeek” era?
The “After DeepSeek” era signifies a shift in the AI landscape where companies can develop open-source AI models at lower costs, disrupting the dominance of Big Tech in the AI domain.
2. How is Zoho planning to implement AI in its operations?
Zoho plans to implement AI by launching agentic capabilities that allow enterprises to create intelligent digital agents, while also focusing on enhancing programmer productivity and establishing a unique AI narrative.
3. Why is cost management important for SaaS companies transitioning to AI?
Cost management is crucial because the substantial expenses involved in AI technology deployments can impact profitability, necessitating careful planning and strategic investments.
4. What types of AI agents will Zoho introduce?
Zoho will introduce various AI agents, including account manager agents, HR agents, customer support agents, and sales coach agents, among others.
5. How can companies differentiate themselves in the crowded AI market?
Companies can differentiate themselves by creating unique AI narratives, focusing on specific use cases, and enhancing features that provide real value to customers in an increasingly competitive environment.
