Sequoia argues the next trillion-dollar company will sell services, not software
2C_ornot2C · x · 2026-10-24
Sequoia's bold claim: the next $1T company won't be a software company, because services are the new software. Companies spend roughly $6 on services for every $1 on software — e.g. $10K/year for QuickBooks vs $120K for the accountant closing the books — meaning SaaS has been fighting over the smaller budget for 25 years.
The thread contrasts three models: traditional SaaS sells access, capped by product and distribution; traditional services sell people's time, capped by hiring; and service-as-a-software sells completed work, with AI doing most of the execution.
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