Salesforce is big tumble today dragging the market lower the software firm slumping on this quarterly revenue miss and pretty soft guidance

Could that be a trend to watch across software?

Deirdre Bosa digs into that for today's Tech Check and the item.

You must have been fascinated by these numbers last night.

Absolutely, and there's this phrase that is floating around Wall Street these days.

Software nuclear winter, and actually this morning I read a note that said we've moved from

winter to the software apocalypse. It's basically summed up in this one chart the

I. G. V. software ATF barely up on the year versus the Van X semi-ETF up 40% in the same time.

Just a massive delta between the two that goes against conventional wisdom.

Hardware is hard and expensive.

SAS is supposed to be one of the best business models ever scalability, low entry costs,

recurring revenue, but the software pain trade is only gaining more momentum this morning.

We also got soft outlooks from Work Dane into it, telling us that the weakness here is broad an enterprise software,

from SMBs to larger end markets.

There may be some green shoots, though, in consumption software. Snowflake data dog

confluence, they've been giving better outlooks for the second half of the year,

which presents a potentially very interesting dynamic.

If Gen AI applications are compute heavy, they require more usage of cloud

computing resources or API calls, then consumption-based models naturally

scale with the customer needs versus a sales force, which primarily sells on a subscription basis often structured

around a per seat model charging based on the number of users within a company that

have access to the software.

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