Newspaper Summary - 020726

 The following is the article titled “Govt asks Meta to pause WhatsApp user names rollout over fraud risks,” as it appeared in the sources:

Govt asks Meta to pause WhatsApp user names rollout over fraud risks

EXPLANATION SOUGHT. Notice seeks reply within three days; Meta says safeguards in place to prevent misuse

S Ronendra Singh New Delhi

Following the recent introduction of WhatsApp’s ‘user names’ feature, the Centre has issued a formal notice to Meta, seeking a detailed explanation of the new function’s functionality within three days.

“The government has directed Meta not to roll out the ‘user names’ feature until consultation on the matter is over,” highly placed government sources said. The government believes the feature can be misused in a manner similar to Telegram, which was temporarily blocked during NEET-UG 2026 over concerns that anonymous accounts were being used to circulate leaked examination material.

DANGEROUS MOVE “This is not acceptable... We will ask rules, and low and if required, law will be made to stop WhatsApp from user-names... logic is it is dangerous, not good for society, not for anyone. It is prone to impersonation... Anyone can open an account in another name, and people may do financial frauds using fake names,” a senior government official said.

In its formal communication to Meta, the Ministry of Electronics and Information Technology (MeitY) said it had taken note of WhatsApp’s public announcement that it had commenced a phased global rollout of the feature, including in India. According to the notice, the feature would allow users to reserve unique user names and, once fully activated, “initiate and conduct conversations by exchanging user names alone, without disclosing their mobile telephone numbers”.

FRAUD PRONE The Ministry said it was concerned that if this feature is ‘enabled’, the ‘recipient’s’ mobile number will no longer be visible to a first-time contact” and that the change “may materially increase the incidence of online fraud, phishing, digital arrest scams and impersonation attacks, by enabling bad actors to solicit and message victims”.

Accordingly, the Ministry directed Meta to explain “why regulatory action should not be initiated under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, for failing to implement ‘due diligence’ obligations that may increase cybercrimes”. It reminded the company that WhatsApp, as a “significant social media intermediary”, is required to comply with due diligence obligations under the IT Rules.

The notice specifically referred to Section 79 of the IT Act governing intermediary liability protections; Rules 3 and 4 of the IT Rules relating to due diligence and identification of the first originator of information; and Sections 66C and 66D of the IT Act dealing with identity theft and cheating by personation using computer resources.

META CLARIFIES Responding to the government’s concerns, Meta said the feature had not yet been activated and will be introduced gradually later this year.

“We’ve announced the option for people to reserve their unique user name on WhatsApp. The ability to use a user name is not yet live and will be rolling out later this year,” a WhatsApp spokesperson said. Meta also stressed that users would still need a phone number to create and use a WhatsApp account.

According to the company, there will be multiple layers of protection against scams, including requiring users to know the user name before they can initiate a chat. It also said it has built-in systems that use AI and machine learning to proactively detect and remove impersonation accounts.

The following is the article titled “Rupee closes at three-week low of 95.24/dollar” as it appeared in the sources:

Rupee closes at three-week low of 95.24/dollar

Our Bureau Mumbai

The rupee posted its steepest single-day decline in over three weeks on Wednesday, weakening 58 paise to close at 95.24 against the US dollar, as aggressive dollar buying by importers, stop-loss triggers and a sharp rise in Brent crude oil prices overshadowed support from domestic equities and likely intervention-related dollar sales by state-owned banks.

The domestic currency ended at a three-week low. It had last touched this level since June 8, when it had lost 77 paise in a single session.

The rupee has now extended its losing streak for the fourth day, losing about 108 paise per dollar since June 18.

Wednesday's decline also follows a dismal May trade performance for the country, which showed a widening trade deficit as exports slowed and imports grew.

The following is the article titled “It’s finally pouring for RAINMUMBAI” as it appears in the sources:

It’s finally pouring for RAINMUMBAI

Daily trading in NCDE’s weather derivative hits ₹20 crore as the monsoon picks up

Vishwanath Kulkarni Bengaluru

Every cloud has a silver lining. The delay in the monsoon’s arrival in Mumbai may have dampened the initial enthusiasm for India’s first tradeable weather derivative, but the sudden downpour has now driving renewed interest in the contract called RAINMUMBAI. It is now seeing trade of ₹20 crore a day.

The National Commodity and Derivatives Exchange (NCDEX), India’s first exchange to launch rainfall futures last month, which has already seen trading of over 10,000 lots since the change officials expect the trade to pick up further as the South West monsoon progresses and retail and institutional interest builds.

“The initial response was not as per our expectation because there were no rains, but now it should pick up since the rains have come. It is an exact match with what is happening now,” said Arun Raste, CEO, NCDEX.

DRIZZLE TO DIVIDENDS

RAINMUMBAI, a rainfall index based on Mumbai’s monsoon precipitation, has seen its price and trading changing weather expectations. With trading activity expected to increase, prices softened as traders anticipated below-normal rainfall. With the monsoon now establishing over the city, the sentiment is reversing.

With trading activity steady state, the contract is already recording a turnover of ₹20 crore on a daily basis and RAINMUMBAI has an open interest of about ₹600 crore.

The turnover, Raste said, should improve going forward as rains continue and more investors become familiar with the product. Presently, institutional participants, including farmer producer organisations (FPOs) and a few weather derivative contract, are participating. The NCDEX is looking to introduce two more weather derivative products—one for the North-East Monsoon and another for the summer heat—some time later this year.

HEDGING HEAVENS

Weather, which impacts traditional commodity futures, is now a commodity itself as derived from the India Meteorological Department (IMD) data on the future price of a physical commodity.

As rainfall expectations evolve through the season, the contract’s price adjusts accordingly, allowing businesses exposed to weather risk such as agriculture, logistics, construction and power, as well as investors, to hedge their risks or take directional views on the progress of the monsoon.

The following is the editorial titled “Chipping away” from the July 2, 2026 edition of The Hindu BusinessLine:

Chipping away

Semiconductor push should be followed through

The Centre’s decision to approve a Budget proposal of around ₹1.25 lakh crore for the India Semiconductor Mission (ISM) 2.0 is a strong signal that India’s semiconductor ambitions remain a strategic priority. The allocation, substantially higher than the ₹76,000 crore earmarked for the first phase, comes at a time when the global race for chip supremacy is intensifying amid geopolitical tensions, supply chain disruptions and the growing centrality of semiconductors to economic and national security.

Over the past three years, India has moved from a passive consumer of chips to a credible destination for semiconductor investment. Twelve projects spanning fabrication, assembly, testing and packaging have been approved, attracting investments exceeding ₹1.5 lakh crore. The Tata Group’s fabrication project with Taiwan’s PSMC, Micron’s packaging facility and multiple OSAT projects are tangible evidence of this progress, placing India as more than just a back-office for chip design. Simultaneously, the Design Linked Incentive (DLI) scheme is nurturing a pipeline of indigenous fabless start-ups that could become tomorrow’s semiconductor champions.

However, semiconductor manufacturing requires enormous capital, long gestation periods and continuous technological upgrades. ISM 2.0 must therefore go beyond approving fresh projects. Existing facilities must be supported through expansion that enables them to scale up production. While India does not have sub-7nm leading-edge manufacturing capacity, or access to highly restricted EUV lithography machines, the domestic fabrication plan is anchored around 28nm, which is the workhorse for global electronics. This can cater to the demand for microcontrollers, EV powertrains, 5G modems, IoT sensors, and display drivers. This segment accounts for a significant share of global semiconductor demand and offers India a realistic entry point into the value chain. Strengthening ecosystem support, chip design capabilities and talent must continue.

Government procurement can play a catalytic role by mandating the use of domestically manufactured chips in public infrastructure, defence systems, railways, and BharatNet’s 5G rollout. Strategic Partnerships such as Tata Electronics’ supply agreement with Intel are encouraging, but the entire value chain must be incentivised for building a sustainable ecosystem. Beyond fabrication, chipmaking depends on access to critical minerals, advanced manufacturing equipment, and specialised talent. China’s control over exports of key minerals has underscored the vulnerabilities in global supply chains. India’s partnerships through initiatives such as the proposed Pax Silica alliance, therefore, acquire strategic significance. NITI Aayog’s estimates suggest an investment requirement of $135-180 billion over the next decade to build a globally competitive semiconductor industry. The Centre cannot shoulder this burden alone. Yet, sustained public funding can de-risk private investment and inspire long-term confidence.

The following is the article titled “6 lakh retail investors, LIC, MIT hit as KPIT dives 17% on revenue warning,” as it appeared on page 7 of the source:

6 lakh retail investors, LIC, MIT hit as KPIT dives 17% on revenue warning

THUMBS DOWN. Analysts downgrade the stock as tech major expects Q1 dollar revenues to decline 1%-2% y-o-y

Anupama Ghosh Mumbai

Shares of KPIT Technologies lost nearly 17 per cent on Wednesday to close at ₹587.55, almost a four-year low, wiping out significant market value for its shareholders, including 6 lakh retail investors, LIC and the Massachusetts Institute of Technology, as the Pune-based automotive software company issued a surprise profit warning on Tuesday.

AUTO MAJORS TO CUT

Analysts believe that while KPIT Technologies on Tuesday said it expects Q1-FY27 USD revenues to decline approximately 1 per cent year-on-year compared to Q1-FY26. The company attributed the shortfall to abrupt spending cuts by certain European automotive OEMs, triggered by profit warnings and adverse business conditions at those clients. Furthermore, it acknowledged the impact was not anticipated and came to light only in recent weeks.

According to Morgan Stanley, with a weak start to Q1-FY27, KPIT’s 18-22 per cent growth guidance for FY27 will be a tall task. Until Q4-FY27, it would be needed to grow its quarterly revenues by 5-8 per cent and margins by 20-30 bps every quarter. It has cut its price target on KPIT to ₹740 from ₹1,030.

Beyond revenue, KPIT warned that EBITDA margins for the June quarter will decline sequentially in Q1-FY27 — and at a sharper rate than revenues — as the company is limited in its scope for cost optimisation in such a short time frame.

KEY SHAREHOLDERS

KPIT is significantly owned by the public. While promoters hold 39.42 per cent, the public hold 59.81 per cent shareholding in the company. Among the public, mutual funds hold 12.09 per cent, and insurance companies hold 11.13 per cent. Retail investors hold 15.79 per cent.

JM Financial downgraded the stock to “Reduce” with a target of ₹620, cutting FY25-27 earnings estimates by 12-13 per cent and trimming the target PE to 35x from 45x. SBI Securities flagged the development as a near-term negative for KPIT and peers including LTTS and Tata Elxsi.

Kotak Securities said cyclical challenges will right-size expectations rather than change aspirations rather than being a structural issue. It has cut its rating from “Add” to “Reduce” (TAM). “This follows the significant increase in stock price in the last year. This has pushed valuation multiple in near-term. It has however downgraded KPIT to “Add” from “Long” with a target of ₹720,” it said.

KPIT CLARIFIES

Meanwhile, KPIT clarified that the expected impact as stated on Q1-FY27 revenues is based on "meaningful interactions" with multiple client actions. “We have also indicated the growth trajectory for the rest of the years will continue to see growth. Therefore, we expect FY27 revenue to be on similar range as Q1-FY27 revenue,” it said.

The following is the article titled “10 steps to reducing home prices” by Gurbachan Singh, as it appeared in the sources:

10 steps to reducing home prices

HOMING-IN. Amending the Land Acquisition Act and allowing for a higher floor space index in some areas are among the required measures

Gurbachan Singh

Houses, as they are, all said and done, are very high in urban India. The root of the problem lies in the public policy. This article presents a ten-point policy solution. It is a very long story but told briefly here. Some of it is an ‘out of the box’ story; but most of it is not.

First, the existing major cities are too big for further expansion at reasonable costs. We need new cities that are not extensions of existing small cities. But the public authorities are too small for this. We need public policy that enables the private sector to lead in new city development. The expansion needs to be holistic so that people actually shift in a phased manner. Home prices will be significantly lower and attractive in the new urban areas.

Second, in the existing big cities there is a regulatory mess. There are severe restrictions on real estate development, including FSI. There is a case for much higher floor space index in some areas, and better public utility and civic institutions like the Delhi Development Authority. The supply of homes will expand.

URBAN LAND PRICE

Third, with the massive expansion of supply of land for housing and price to above, the price of land can, in fact, rise in the short run. However, the long-run story is very different. As the number of houses in a city increases, and particularly after a while, their inflation-adjusted prices will fall. Accordingly, the price of land will fall. After some time, the house prices of homes will fall. We have international experience of such a causality here after a while — from house prices to urban land prices. This is the price of rural land at the boundaries of cities.

Fourth, there is a need to amend the Land Acquisition Act, 2013, which can contribute to reducing the price of rural land. The displaced farmers can be part owners of the new real estate on their existing small cities. This is not just for efficiency but for equity. It is a win-win for livelihood.

Fifth, with the policies suggested here, real estate prices will start coming down. This itself can reduce the incentives for the big investor demand. This can, in turn, increase the effective supply of real estate for end-users. We also have “retail” investor demand for homes. This is somewhat related to the low post-tax and inflation-adjusted returns on bank deposits, etc., due to financial repression, public sector banks, and tax laws. A change in policy will help here. This can tilt the “retail” investor demand from real estate to financial assets. This too will increase the effective supply of real estate.

Sixth, a part of the investor demand is due to the need to absorb black money. This is often justified with the argument that the black money may otherwise get invested in gold or in assets abroad through the hawala route. This is a case of capital outflow from the country, which needs to be discouraged. But the question is not about absorption of black money within the economy. Instead, we need to phase out the very generation of black money; this can, among other things, reduce the price of real estate.

Seventh, the circle rate in many places is lower than the market price. There is a need to gradually raise the circle rate. This can reduce the “facility” to absorb black money in purchasing properties. It also helps to reduce the stamp duty. Home prices will cool down.

CAPITAL GAINS TAX

Eighth, given the situation, there is a need to reduce, for some years, the capital gains tax on the sale of real estate, if the proceeds are invested in financial assets. So, some investors may choose to sell vacant properties. This increases the effective supply. This and some other policies suggested above can increase the fiscal deficit. However, the public authorities can sell the excessive land that they hold. This helps in raising funds. It also helps in increasing the effective supply of land.

Ninth, the ‘sell and build’ model is often used by builders in India as a way of financing a project, given the difficulties in borrowing for real estate development from banks and other financial institutions. There is a need then to liberalise, with safeguards, lending for real estate development. This can induce a gradual shift from the ‘sell and build’ model to the ‘build and sell’ model. This can reduce the risk and price for end-users.

Tenth, though the above policies can reduce home prices over time, homes can still be unaffordable for very many poor people. The public authorities need to intervene directly in this context with some schemes or subsidies.

In conclusion, appropriate policies can reduce, if not obviate, the need for short-term and costly palliative measures to reduce home prices.

The writer is an independent economist. He taught at Ashoka University, IIS (Delhi) and JNU.

The following is the article titled “Edelweiss MF’s equity, hybrid AUM crosses ₹1 lakh crore” as it appeared on page 7 of the sources:

Edelweiss MF’s equity, hybrid AUM crosses ₹1 lakh crore

Our Bureau
New Delhi

Edelweiss Asset Management Company (AMC) on Wednesday said its assets under management (AUM) in equity and hybrid assets have crossed the ₹1 lakh crore milestone.

“This achievement has been supported by strong consistency in performance of our equity and hybrid schemes and our robust distribution network,” Radhika Gupta, Managing Director and Chief Executive Officer, Edelweiss AMC, said in a media briefing. Further, she committed that it will offer differentiated product solutions and focus on delivering robust risk management and consistent returns for its investors.

Edelweiss AMC’s equity and hybrid AUM has grown by 70 per cent in FY26. In the same period, its folio count increased from 11.59 lakh to 15.7 lakh.

WEALTH CREATION

According to the fund house, the recent growth is primarily driven by its consistent focus on growing the focus on wealth creation through MFs and the increasing role of systematic investing in helping investors build wealth.

On an overall basis, as of June 29, the fund house managed assets across 47 schemes, including large-cap, mid-cap, small-cap, sector-specific and thematic funds. Its SIP book stands at around ₹690 crore, supported by a robust base of about 34 lakh active folios.

The fund house’s flagship products like Edelweiss Midcap and Arbitrage Fund managed assets of more than ₹5,950 crore, making it the largest in the category, according to the company.

The following is the article titled “‘Super El Nino threat, unseen since 1950, taking shape’” as it appeared on page 8 of the sources:

‘Super El Nino threat, unseen since 1950, taking shape’

RINGING A BELL. It may be one of the powerful events triggering fears of major worldwide weather and climate disruptions, says Australian bureau

Srikrishnan PC
Chennai

A potential Super El Nino is taking shape as warming in the tropical Pacific warming conditions reinforcing the event, says the Southern Hemisphere Monitoring Report of the Bureau of Meteorology Australia (BoM). Meteorological say it may become one of the most powerful El Nino events since 1950, triggering fears of major worldwide weather and climate disruptions.

A primary driver of the SSTs in the central tropical Pacific are above El Nino thresholds, and atmospheric indicators are also indicative of a potential Super El Nino. Ocean-atmosphere coupling has allowed the atmosphere work to reinforce the El Nino state and is likely to increase and keep El Nino going until at least the end of the year, says the report.

0.3°C WARMING

The latest relative Nino 3.4 index value (for the week ending June 28) is +1.24°C, comfortably above the El Nino threshold (+0.80°C) and warming by about 0.3°C from +0.94°C in mid-June. All global models are forecasting further warming of the tropical Pacific over the coming months.

Atmospheric indicators, such as trade winds, pressure and cloud patterns, are at levels consistent with El Nino. Trade winds were weaker than average over most of the tropical Pacific, cloudiness has increased near the date line, and the Southern Oscillation Index (SOI) is strongly negative. The latest 30-day SOI on June 27 was -25.2.

IOD OUTLOOK

The Indian Ocean Dipole (IOD) is neutral. The index is -0.02°C on June 27, 2026. Models indicate that a positive IOD event is likely during the southern hemisphere winter-spring. Model forecasts indicate a wide range in onset and peak intensity. A positive IOD can provide more moisture to India, often helping monsoon rain even in an El Nino year. El Nino is a natural phenomenon caused by variations in sea temperatures in the Indian Ocean. Its positive, negative and neutral phases can influence the Indian Monsoon.

WARNING SIGNS

Sea surface temperatures (SSTs) for the globe have been very warm, with May 2026 global SSTs the warmest May on record (since 1900), said the BoM report. Meanwhile, the Copernicus Climate Change Service (C3S), the European Centre for Medium-Range Weather Forecasts (ECMWF), and the Copernicus Marine Service (CMEMS) have both confirmed that global SSTs reached record levels for the time of the year in April and May 2026. The C3S daily SST monitor shows SSTs slightly higher than 20.83°C in 2023 and 2024.

The Copernicus Marine Service says high temperatures contribute to the record levels seen since March 2024, reaching 21°C, reaching 21°C and reaching 21°C from 2023 and 2024 by 21st June.

BROAD IMPACTS

It is not yet clear if this exceedance is transitory or reflective of the coming months. While record-setting temperatures for this time of year are noteworthy, they are only at the beginning of El Nino, said the Copernicus report.

Warming oceans have broad impacts. They will keep the atmosphere warmer for longer, give more energy for more increase evaporation, all of which can lead to more rainfall and floods more likely. Warmer oceans also contribute to sea level rise and ice melt, and increases the stress on marine ecosystems.

Higher SSTs are also associated with more frequent and more intense marine heatwaves — periods of abnormally high water temperatures that disrupt ecosystems and impact coastal economies.

The following is the article titled “TN urges PM to modify VB-G Ram G scheme, give more say to State,” as it appeared on page 9 of the sources:

TN urges PM to modify VB-G Ram G scheme, give more say to State

Our Bureau
Chennai

Even as the TVK-led Tamil Nadu government indicated that it is on board to implement the new Viksit Bharat Gramin Rozgar Guarantee Mission (VB-G RAM G) scheme and earlier this week, Chief Minister Vijay on Wednesday requested Prime Minister Narendra Modi to consider some critical modifications to the scheme.

In a letter to the PM, he requested six key areas, including relaxation of funding patterns, State control over fund distribution, flexible work days, inclusion of State house construction, delegating authority to the State to notify wages, and a more vibrant grievance redressal.

GANDHI’S LEGACY

Vijay has also requested that the new scheme should carry the name Mahatma Gandhi, noting that he would honour his legacy and the significant contribution associated with the rural employment guarantee programme.

Earlier this week, the TVK government had indicated its intention to implement the VB-G RAM G scheme but requested the State, contrary to the Centre’s plan, have a bigger say in deciding who had rural employment scheme.

The new scheme replaces the UPA era Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). While under MGNREGA, the Union government committed to providing funds, the VB-G RAM G operates under a 60:40 Centre-State cost-sharing model.

In its current form, the new scheme will result in a ₹12,642 crore scheme in Tamil Nadu, and with a 60:40 sharing for the Union and State governments, the former’s contribution will be ₹7,585 crore and the latter’s ₹5,057 crore.

ABRUPT SHIFT

“The VB-G RAM G operated under a different structure for state and central participation, and places an unsustainable burden on the state exchequer, which may reduce funding for other critical welfare schemes. I therefore, request that the 100 per cent funding be maintained for the wage and administrative components, with the material component shared on a 75:25 basis between the Government of India and the Government of Tamil Nadu,” Vijay said.

Commenting on the climate conditions, Vijay also suggested that based on advance notification, authority should be given to the District Collectors to notify the 60-day peak agricultural season as per local conditions.

State Housing Schemes under the VB-G RAM G scheme could also significantly accelerate achieving welfare targets and housing for all. “With these vital adjustments, the scheme can be executed with greater strategic vision, maximum local impact, and a sharper focus on rural empowerment,” Vijay said, seeking a favourable consideration of these proposals.

The following is the article titled “US limits on Mythos access keep foreign firms in limbo,” as it appeared on page 10 of the source:

US limits on Mythos access keep foreign firms in limbo

DIGITAL FORTRESS. Global users can access Claude 3.5, a model meant for broader release

Bloomberg

Foreign governments, companies and financial institutions were left in limbo after the Trump administration continued to restrict access to Anthropic PBC’s Mythos, a limited number of US-made AI models that the US government believes could possess advanced domestic and international intelligence models.

Global users can access Claude 3.5, a model similar to Mythos that is intended for a broader release, starting Wednesday, said the Claude maker on Tuesday. But talks with the US government continue over expanded domestic and international access to Mythos via the so-called Project Glasswing, it said. Mythos, a model Anthropic first previewed in April, is so powerful that the company limited access to a select group of vetted institutions to root out and patch cybersecurity vulnerabilities before making it more broadly available.

Washington’s move to restrict access to Mythos has highlighted how dependent the digital security of many US allies is on American silicon and AI innovation.

PROJECT GLASSWING

The US Department of Commerce is overseeing the project that grants access to Mythos. It requires that foreign governments and businesses meet the US Commerce Department imposed export controls on June 12, requiring Anthropic to obtain US permission before allowing any foreign national, company or institution, to access fable or Mythos. The US eased some of the restrictions on Mythos on Tuesday.

Anthropic is restoring access to its original set of Glasswing partners in the US and doesn’t have a timeline for when international partners will be included, said a company spokesperson.

Anthropic never released Mythos to the public, initially making it available to a small number of US tech firms, cybersecurity companies and banks to test out its capabilities. By early June, it added organizations in more than 15 countries that provide critical infrastructure services to Project Glasswing users.

The following is the article titled “$234 billion in enterprise software revenue model at risk from agentic AI: Gartner” as it appeared on page 10 of the source:

$234 billion in enterprise software revenue model at risk from agentic AI: Gartner

Our Bureau
Bengaluru

Agentic AI is set to disrupt enterprise software revenue models by causing the substitution of enterprise application software (SaaS) and creating arbitrage between now and next-gen pricing models. By 2030, this will account for roughly 20 per cent of enterprise application software (SaaS) revenue.

Agentic arbitrage occurs when AI agents complete tasks across multiple systems on a user's behalf, allowing users to interact with multiple traditional software interfaces via one AI.

“Agentic AI changes the economics of software,” said George Brocklehurst, Managing Vice-President at Gartner.

“Agentic systems deliver outcomes directly, bypassing traditional user interface (UX) heavy applications and complex workflows for users. This breaks the link between license count and revenue growth for many enterprise software vendors”.

SAASPOCALYPSE?

This shift is already underway and will refactor how software is built, priced and consumed.

“We are seeing the early destination of ‘SaaSpocalypse’, where the traditional revenue model of the big-spending software firms is being challenged today,” said Brocklehurst.

Experts feel that agentic AI can break the link between user counts and new revenue growth for many enterprise software vendors.

Gartner analysts said enterprise software vendors are facing a “structural risk”. “Enterprise buyers will demand more for less in terms of seats or dashboards,” said Brocklehurst.

“They want better outcomes and adding more AI features often creates more cost, not better outcomes. Vendors will need to acquire systems that retain deep institutional memory and customer context over time”.

Some vendors are already launching ‘outcome-based’ pricing that deliver autonomous results without user intervention, cross-system orchestration and lower customer context and deeper institutional memory. “As organizations increasingly want ‘outcomes’, the user interface is no longer a differentiator,” said Brocklehurst. “Legacy software revenue could be cannibalised by incumbents and taken by new entrants with more horizontally-aligned agentic platforms”.