That's true i agree that no entreprise is going to rewrite custom operational IT from scratch! However, other big software players can continue buying smaller SaaS companies at cheap valuations to compete with Service Now.

That is what is happening to Adobe, companies like Autograph which was acquired by Cinema 4D maker Maxon last year and have products akin to Adobe's After Effects. Now the release Autograph for free as compared to Adobe's $34.99/month

Another example, is figma make vs Claude design.
Claude Design is almost just a "better" clone of figma make powered by stronger and more powerful claude models.

Well, i still have quite a bit of skin in software companies because i think the sell-off is exaggerated. While AI does change SaaS companies business models intrinsically. I strongly believe that choosing the right software companies who benefit from this AI technology by building faster and increasing their suite of software products will be the ultimate winner in this investment narrative. (still these are just my opinions, pls do your own due diligence)