SaaS is Dead! - Agentic AI in Healthcare

The era of agentic AI is upon us, reshaping the tech landscape at an unprecedented pace. Microsoft CEO Satya Nadella recently declared, "Agents will replace ALL business applications," signaling the end of the SaaS era as we know it. Microsoft is backing up this bold statement with significant restructuring, aligning its development teams around AI to lead this transformative wave.

But Microsoft isn’t the only player betting on agentic AI. Across the industry, SaaS companies as well as all prominent technology companies are embracing this new paradigm:

• Companies like Salesforce and Workday, to name a few, are integrating agentic AI into their platforms to deliver more intelligent, adaptive solutions.
• Technology companies like IBM and Meta either have a hiring freeze or are exploring replacing even mid-level engineers with AI systems, a move aimed at streamlining operations and increasing efficiency.

These shifts underscore a broader industry realization: the SaaS model is too slow, resource-intensive, cumbersome, and expensive making it impossible to evolve to keep pace with the capabilities and expectations of agentic AI. These and every other technology company have embraced agentic AI as their focus, with all new solutions centered on agentic AI or enabling users to build their own agents.

Agentic AI in Healthcare and Life Sciences

Traditionally dominated by SaaS-based solutions, the healthcare and life sciences sectors are now witnessing a significant shift as agentic AI becomes the central focus. Partnerships like the collaboration between NVIDIA and major providers like IQVIA, Mayo Clinic, and Illumina among others illustrate how the change is already underway. These transformative alliances highlight the urgent need for organizations to adapt or risk being left behind in this rapidly evolving landscape:

• IQVIA and NVIDIA Partnership: On January 13, 2025, NVIDIA announced a collaboration with IQVIA to develop custom foundation models and agentic AI workflows for healthcare. This partnership aims to accelerate research, clinical development, and access to new treatments. By leveraging IQVIA's vast healthcare-specific data and domain expertise, the partnership is set to enhance clinical trial efficiency and optimize therapy launch planning.
• Illumina and NVIDIA Collaboration: As part of NVIDIA's healthcare push announced on January 13, 2025, genomics specialist Illumina partnered with NVIDIA to advance genomic research. This collaboration is expected to leverage AI to accelerate genomic data analysis and interpretation, potentially leading to breakthroughs in personalized medicine and drug discovery.
• Mayo Clinic and NVIDIA Partnership: Also announced on January 13, 2025, Mayo Clinic joined forces with NVIDIA to pioneer advanced healthcare services with agentic and generative AI. This partnership focuses on developing AI models for digital pathology, which could significantly improve disease detection and diagnosis.

Why Success Requires More Than Just AI Tools

In this rapidly evolving landscape, acquiring AI tools or platforms isn’t enough. True success demands comprehensive solutions and a shift in mindset. Even large technology service providers recognize this reality and are actively acquiring or partnering with niche, specialized subject matter experts. For instance, Infosys acquired BASE Life Science, a consulting firm collaborating with leading software technology providers in the life sciences industry, including Veeva. Announced on July 13, 2022, this acquisition underscores Infosys' commitment to strengthening its capabilities in the life sciences sector. This highlights the importance of complementary services, experience, and expertise to technology that is crucial for success and that includes:

• Strategic consulting to align AI initiatives with business goals.
• A focus on operational efficiency to maximize ROI.
• Transforming processes and organizational structures to fully leverage AI capabilities.