Mehmood, who is CEO, likens it to Datadog’s early growth, when the monitoring company won e-commerce customers who refused to build on Amazon Web Services. It was a reasonable concern, given that Amazon was simultaneously putting many of those same retail stores out of business in what became known as the “retail apocalypse.”

The AI equivalent, as Mehmood sees it, is already underway. Anthropic, OpenAI, and others are moving fast into vertical software markets — what some are calling the SaaSpocalypse.

“At Datadog we saw this clearly,” Mehmood said. “A big part of our multicloud business came from e-commerce businesses who did not want to run on Amazon, right? … We are absolutely going to see the same dynamic as Anthropic goes to compete in legal and healthcare and finance and whatever else.”

The bet is that companies will increasingly seek infrastructure that separates the coding model from all the other orchestration needed to ensure AI-generated code is properly vetted and maintained (and that they’ll want a vendor without a competing agenda).