In a recent deep dive discussion with 20VC x SaaStr, Mike Cannon-Brooks, co-founder and CEO of Atlassian, addressed the prevailing concerns surrounding the future of B2B software in the context of artificial intelligence. The conversation gained urgency as Atlassian reported impressive growth figures, achieving a 23% increase with an annual recurring revenue (ARR) of $6.4 billion and an even more notable 44% increase in remaining performance obligations (RPO). Ultimately, Cannon-Brooks confronted the skepticism swirling around the B2B and SaaS sectors, particularly the notion that software is becoming irrelevant.

The phrase “software is dead” is a tired refrain that Mike Cannon-Brooks closely scrutinizes. He states, without hesitation, that such assertions are “ludicrous.” His perspective hinges on a fundamental truth: businesses have always sought out pre-built technology solutions rather than constructing every element of their systems from the ground up. The transformation propelled by AI does not signify the end of software; it merely accelerates the natural evolution of the industry. Acknowledging that some companies may falter in the coming years, he emphasizes that many will continue to evolve and prosper. This reality reflects patterns observable over the past decade, dispelling fears that AI will universally obliterate the landscape.

Cannon-Brooks implores founders to dismiss the “SaaS is dead” narrative. Instead, the primary focus should lie in evaluating whether a company has the potential to succeed in the coming era. He points out historical data, revealing that many companies from earlier competitive analyses have since vanished—absorbed by others or faded away entirely. This relentless churn is characteristic of the tech industry, and AI is not the harbinger of a new reality; it’s merely quickening a familiar cycle.

A standout moment in the conversation occurred when Cannon-Brooks articulated what should be the anthem of every B2B founder: “You just have to be good.” When discussing Atlassian’s competition with companies such as Anthropic for CIO budgets, he reiterated that the company’s focus should not be on frantically pivoting towards AI or adopting a generalized agent platform. Instead, the mantra is clear: deliver superior value to customers compared to the competition.

Atlassian employs a substantial research and development team, comprising about 10,000 dedicated individuals. They internally leverage advanced AI tools like Claude Code, leading to notable reductions in inference costs even while deploying increasingly sophisticated AI-driven features. Cannon-Brooks highlights that some new features are 1,000 times cheaper to operate now than when they first rolled out, showcasing tangible improvements in gross margins over recent quarters. This embodiment of “being good” transcends mere rhetoric; it signifies a relentless pursuit of execution excellence and value delivery.

The thesis that businesses must fundamentally be good is underscored by the pressing reality of the revenue stacking problem confronts the industry giants. Mike points to projections for Anthropic and OpenAI, suggesting that combined, these two companies could generate roughly $350 billion in ARR by 2029. This staggering figure is juxtaposed against a global software market valued at around $700 billion. Cannon-Brooks raises eyebrows as he notes that this scenario is challenging for smaller players in the B2B SaaS ecosystem. For many, revenue stacking by such titans may render the competitive landscape even more complex.

The entirety of this discussion leads to a critical takeaway that resonates deeply: B2B founders must recalibrate their strategies not by clinging to fear or misinformation but by doubling down on quality and value. As artificial intelligence continues to reshape industries, those who remain steadfast and committed to delivering genuine solutions rather than succumbing to ephemeral trends will emerge victorious. The clarity with which Cannon-Brooks articulates these insights serves as a beacon of practical wisdom for executives navigating the turbulent waters of technological advancement.