Archive · 23 Sep 2026
Zoho Expands Into Vertical SaaS as Vembu Predicts AI Commoditization
Zoho is a technology company that has been operating for 30 years.
It is launching seven software products designed for specific industries such as healthcare, education and real estate.
These products are partly prepared in advance, so customers should need less time and money to customize them.
Sridhar Vembu says artificial intelligence can help workers do more in less time.
He compares older software work to weaving by hand and newer tools to machines that make weaving faster.
Computer memory and special AI chips have become more expensive.
Zoho is responding by building some of its own servers and renting access to expensive AI chips.
Vembu believes AI technology will become cheaper and more efficient over time.
He disagrees with calls from some major technology companies for the industry to slow AI development, saying those companies may want less competition.
Zoho launched seven industry-specific applications as it entered the vertical SaaS market while marking its 30th anniversary.
Sridhar Vembu said the pre-customized products are designed to reduce deployment time, customization costs and time to value.
Vembu said Zoho is developing both industry-specific software and internal tools to increase workforce productivity and reduce technology dependence.
Rising memory and GPU prices have increased data-center costs, prompting Zoho to build some servers and lease GPU capacity.
Vembu argued that falling prices, more efficient large models and improving small models will make AI and large language models commodities.
- Who
- Zoho and its Co-founder and Chief Scientist Sridhar Vembu.
- What
- Zoho entered vertical SaaS with seven industry-specific applications, while Vembu discussed AI productivity, data-center costs and the future of AI economics.
- When
- Wednesday, as Zoho marked its 30th anniversary.
- Where
- Zoho, the Chennai-based technology company; the article also discusses its broader global technology-industry context.
- Why
- To provide customers with faster, less costly, pre-customized software and to capture productivity gains from AI.
Support continued AI development
Call for an AI slowdown
Whether the industry should slow down
Support continued AI development
Sridhar Vembu argues that the industry should not collectively slow AI development, saying calls for a slowdown may allow leading companies to move faster and monopolize the market.
Call for an AI slowdown
Some global technology majors have called for a slowdown in AI development, according to the interview.
The future of AI economics
Support continued AI development
Vembu says the number of models is increasing, prices are falling and large language models are becoming commodities, making it difficult to justify existing valuation and profit expectations.
Call for an AI slowdown
The companies seeking a slowdown are presented as having strong commercial interests in the current AI market, although the article does not provide their detailed economic arguments.
- Company
- Zoho
- Executive interviewed
- Sridhar Vembu, Co-founder and Chief Scientist
- New offering
- Seven industry-specific vertical SaaS applications
- Industries mentioned
- Real estate, healthcare and education
- Server strategy
- Zoho is making some of its own servers to offset higher memory-related costs.
- GPU strategy
- Zoho is leasing GPU capacity rather than buying GPUs.
- AI outlook
- Vembu expects large models to become more efficient, small models to improve and AI to become a commodity.