Fortune: CIOs Reallocating 40% of IT Budgets From Traditional SaaS to Agentic Platforms and LLM Tokens
Fortune·high signal
Fortune reports CIOs and CTOs are taking a harder line with SaaS vendors as shares of Salesforce, SAP, Workday, and ServiceNow have all tumbled 30%+ since January. Recent surveys indicate 40% of IT budgets are shifting from traditional SaaS subscriptions to agentic platforms and LLM token usage. CIOs cite high costs and inflexibility as primary frustrations, with organizations in low-margin or AI-disrupted sectors actively evaluating AI alternatives for lower total cost of ownership.