CloudTech is part of the TechForge Publications seriesView AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsView AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsTechForge SearchNewsCategoriesCloud in ActionCloud MigrationCloud ROI & CostInternal Change ManagementMissteps & LessonsSME & Startup CloudEditorial DeskAnnouncements & AnalysisForecasts & TrendsMigrations: Behind the ScenesTechEx EventsFeaturesInterviewsPodcastsSponsored ContentVideosWebinarsFuture of CloudAI & CloudCloud EthicsEdge & Distributed CloudOpen CloudQuantum & CloudServerless ArchitectureSustainable CloudIndustry PerspectivesEducation & ResearchFinanceHealthcare & Life SciencesLegal & HRMedia, Gaming & CreativePublic SectorRetail & ConsumerMarket IntelligenceCloud StartupsEarnings & Market ShareEvent CoverageMergers & AcquisitionsVendor Roadmaps & LeadershipSecurity, Privacy & TrustCloud CybersecurityCyber Security & Cloud ExpoEncryption & Data PrivacyGovernance, Risk & ComplianceIdentity & AccessStrategy & Decision-MakingChoosing a Cloud StrategyFinOps & BudgetsLock-In & ExitMulti- & Hybrid CloudProcurement & ContractsSkills & HiringTechnology StackBig VendorsContainers & KubernetesDatabases & Data PlatformsInfrastructure as CodeObservability & MonitoringXaaS ModelsEventsResourcesExclusive VideosPodcastsAll ResourcesMoreAdvertiseAbout UsContact Us SearchNewsCategoriesCloud in ActionCloud MigrationCloud ROI & CostInternal Change ManagementMissteps & LessonsSME & Startup CloudEditorial DeskAnnouncements & AnalysisForecasts & TrendsMigrations: Behind the ScenesTechEx EventsFeaturesInterviewsPodcastsSponsored ContentVideosWebinarsFuture of CloudAI & CloudCloud EthicsEdge & Distributed CloudOpen CloudQuantum & CloudServerless ArchitectureSustainable CloudIndustry PerspectivesEducation & ResearchFinanceHealthcare & Life SciencesLegal & HRMedia, Gaming & CreativePublic SectorRetail & ConsumerMarket IntelligenceCloud StartupsEarnings & Market ShareEvent CoverageMergers & AcquisitionsVendor Roadmaps & LeadershipSecurity, Privacy & TrustCloud CybersecurityCyber Security & Cloud ExpoEncryption & Data PrivacyGovernance, Risk & ComplianceIdentity & AccessStrategy & Decision-MakingChoosing a Cloud StrategyFinOps & BudgetsLock-In & ExitMulti- & Hybrid CloudProcurement & ContractsSkills & HiringTechnology StackBig VendorsContainers & KubernetesDatabases & Data PlatformsInfrastructure as CodeObservability & MonitoringXaaS ModelsEventsResourcesExclusive VideosPodcastsAll ResourcesMoreAdvertiseAbout UsContact Us Subscribe Subscribe SearchNewsCategoriesCloud in ActionCloud MigrationCloud ROI & CostInternal Change ManagementMissteps & LessonsSME & Startup CloudEditorial DeskAnnouncements & AnalysisForecasts & TrendsMigrations: Behind the ScenesTechEx EventsFeaturesInterviewsPodcastsSponsored ContentVideosWebinarsFuture of CloudAI & CloudCloud EthicsEdge & Distributed CloudOpen CloudQuantum & CloudServerless ArchitectureSustainable CloudIndustry PerspectivesEducation & ResearchFinanceHealthcare & Life SciencesLegal & HRMedia, Gaming & CreativePublic SectorRetail & ConsumerMarket IntelligenceCloud StartupsEarnings & Market ShareEvent CoverageMergers & AcquisitionsVendor Roadmaps & LeadershipSecurity, Privacy & TrustCloud CybersecurityCyber Security & Cloud ExpoEncryption & Data PrivacyGovernance, Risk & ComplianceIdentity & AccessStrategy & Decision-MakingChoosing a Cloud StrategyFinOps & BudgetsLock-In & ExitMulti- & Hybrid CloudProcurement & ContractsSkills & HiringTechnology StackBig VendorsContainers & KubernetesDatabases & Data PlatformsInfrastructure as CodeObservability & MonitoringXaaS ModelsEventsResourcesExclusive VideosPodcastsAll ResourcesMoreAdvertiseAbout UsContact Us Hamburger Toggle Menu XaaS ModelsSaaS and software infra companies’ stocks bounce backJoe Green1st June 2026 Share this story: Tags:agentic aiAIdata layeroktaSaaSSnowflakeCategories::XaaS Models Last month’s drop in the share prices of many cloud-based software companies has been partially reversed after several software companies reported good figures.The big dip in SaaS providers’ share prices was caused by claims that companies would soon be able to develop their own applications using large language model-aided development tools.Many in the industry speculated that in-house development would enter into its own, given that hobbyists and small teams were able to produce simulacra of applications for which many businesses were paying large monthly sums.
The iShares Expanded Tech-Software traded fund rose 8% in value last week, up 21% on May.Data management provider Snowflake was a notable name among the high performers, rising close to 50% in value in the last week of May.Okta, the identity verification and security tool provider gained 30% in value on the last trading day of the month.
Both companies may be experiencing upticks in their popularity due to their common use in AI applications, with Snowflake’s data layer and Okta’s role in verifying machine identities being put to use in AI-first applications.Snowflake’s $6 billion deal with Amazon also helped bolster its figures.Asana, Workday, ServiceNow, Atlassian, and Shopify also gained value, in an apparent rebuttal to previous speculation that their market shares might decline as businesses develop their own applications, or use new, cheaper, ‘vibe-coded’ alternatives to the big cloud SaaS platforms.
However, there is a world of difference between a project created by an LLM over the course of a few days that can perform some of the tasks of the world’s complex ERPs/CRMs, and the reality of deploying such code at scale, in the open.Considerations such as security, updates, maintenance, the addition of new features, scalability and elasticity, customer support, sales efforts, and identity verification mean that the majority of vibe-coded SaaS ‘replacements’ remain little more than basic minimum viable products (MVPs).Since the early 00s, the markets, venture capital firms, and private investors have regarded cloud software companies as safe bets, with a tacit assumption that the few thousand users of every new startup SaaS platform would inevitably grow to millions of daily users willing to pay a monthly subscription.
However, with the majority of held stakes in thousands of cloud service companies now yielding lower or break-even returns, markets needed little persuasion to begin an exodus from the sector, even if claims of a ‘SaaSpocalypse’ were exaggerated.Argus Research, per CNBC wrote, “We think Snowflake may actually be a beneficiary of genAI development as enterprises increasingly need to unify and harmonize data [to] exploit the benefits of GenAI.” As companies look to monetise on their data reserves, providing a clean and accurate data layer is being portrayed as important for the efficacy of organisations’ AI projects – presenting such a data resource is Snowflake’s bread and butter.Similarly, the Okta platform’s verification of human and machine identities is an integral part of allowing multiple agentic instances safer access to data.
Even if the claims of SaaS replacements springing up thanks to LLM-coded software development were to become true in the future, the value of the large providers’ deterministically-coded business applications looks set to hold for the time being.Companies providing underpinning services on which the smartest AIs depend also look to be holding their value. Want to learn more about Cloud Computing from industry leaders? Check out Cyber Security & Cloud Expo taking place in Amsterdam, California, and London.The comprehensive event is part of TechEx and co-located with other leading technology events.
Click here for more information.CloudTech News is powered by TechForge Media.Explore other upcoming enterprise technology events and webinars here.About the Author Joe GreenEditor Joe is a technology journalist with more than 25 years’ experience in the sector.He has particular specialisations in open-source, data privacy, systems administration, and software development.Related Snowflake signs US$6bn AWS deal for enterprise AI workloads28th May 2026 Anthropic explores Microsoft Maia chips for cloud compute25th May 2026 Google and Blackstone plan US$5 billion AI cloud venture19th May 2026 SambaNova and Intel’s heterogeneous x86 AI architecture19th May 2026 Snowflake signs US$6bn AWS deal for enterprise AI workloads28th May 2026 Anthropic explores Microsoft Maia chips for cloud compute25th May 2026 Google and Blackstone plan US$5 billion AI cloud venture19th May 2026 SambaNova and Intel’s heterogeneous x86 AI architecture19th May 2026 Join our CommunitySubscribe now to get all our premium content and latest tech news delivered straight to your inbox Click here Popular Cloud ROI & Cost, Interviews, Sponsored Content, Sustainable CloudRipple effect: Xylem’s sustainable water solutions for Europe’s data centres 20514 view(s)Cloud Computing, XaaS ModelsConcern over cloud storage security remains says Spiceworks – but good news for OneDrive 12625 view(s)Big Vendors, Cloud Computing, Cloud Cybersecurity, Market Intelligence, Security, Privacy & Trust10 real-life cloud security failures and what we can learn from them 6402 view(s)Big Vendors, Cloud Computing, Market Intelligence5 of the best: cloud technology training platforms 6196 view(s)Cloud ROI & Cost, Interviews, Sponsored Content, Sustainable CloudRipple effect: Xylem’s sustainable water solutions for Europe’s data centres 20514 view(s)Cloud Computing, XaaS ModelsConcern over cloud storage security remains says Spiceworks – but good news for OneDrive 12625 view(s)Big Vendors, Cloud Computing, Cloud Cybersecurity, Market Intelligence, Security, Privacy & Trust10 real-life cloud security failures and what we can learn from them 6402 view(s)Big Vendors, Cloud Computing, Market Intelligence5 of the best: cloud technology training platforms 6196 view(s) See all Latest View All Latest AI & Cloud19th May 2026Google and Blackstone plan US$5 billion AI cloud venture Cloud ROI & Cost19th May 2026SambaNova and Intel’s heterogeneous x86 AI architecture AI & Cloud15th May 2026Google and SpaceX discuss orbital AI data centres AI & Cloud19th May 2026Google and Blackstone plan US$5 billion AI cloud venture Cloud ROI & Cost19th May 2026SambaNova and Intel’s heterogeneous x86 AI architecture AI & Cloud15th May 2026Google and SpaceX discuss orbital AI data centres SubscribeAll our premium content and latest tech news delivered straight to your inbox Subscribe ExploreAbout UsContact UsNewsletterPrivacy PolicyCookie PolicyAbout UsContact UsNewsletterPrivacy PolicyCookie PolicyReach Our AudienceAdvertisePost a Press ReleaseContact UsAdvertisePost a Press ReleaseContact UsCategoriesCloud in ActionEditorial DeskFeaturesFuture of CloudIndustry PerspectivesMarket IntelligenceSecurity, Privacy & TrustTechnology StackStrategy & Decision-MakingAll CategoriesCloud in ActionEditorial DeskFeaturesFuture of CloudIndustry PerspectivesMarket IntelligenceSecurity, Privacy & TrustTechnology StackStrategy & Decision-MakingAll CategoriesOther PublicationsExplore AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsExplore AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsCloudTech News is part of TechForge SubscribeAll our premium content and latest tech news delivered straight to your inbox
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