Battery Ventures: high-retention software moats breaking open as enterprises chase AI
rseroter · x · 2026-09-04
Battery Ventures' new report "Defying Gravity: The System of Record in the Age of AI" argues that software markets long locked up by high gross retention rates are breaking back open: enterprises are eager to adopt AI but often can't do it within their existing systems of record, pushing them to switch vendors.
If true, this is a significant shift — the retention advantage that has protected incumbent SaaS players may erode as AI adoption forces companies to rebuild around new systems.
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