Snowflake CEO Forecasts AI's App Upheaval: Software's 'Dumb Pipe' Future

In a direct challenge to the established order, Snowflake CEO Sridhar Ramaswamy is making a case that will unsettle boardrooms across the software industry. He predicts artificial intelligence will strip most enterprise applications down to basic utilities, transforming them into what he terms 'dumb data pipes.'

Ramaswamy, who assumed leadership of the cloud data giant in early 2024, argues that the core value in business technology is rapidly shifting. For decades, companies like Salesforce and SAP built empires on complex applications. Now, Ramaswamy sees their polished interfaces and workflow engines ceding importance to the data layer beneath, where AI systems can analyze and act independently. The application, in his view, becomes mere plumbing—a conduit for information while AI agents perform the actual work.

This perspective isn't merely theoretical. It guides Snowflake's aggressive pivot. The company is investing heavily in its Cortex AI services and support for autonomous AI agents, aiming to position its platform as the essential foundation for this new era. The logic is straightforward: if AI agents need data to function, the platform hosting that data becomes indispensable.

Not everyone is convinced. Industry observers note the deep entrenchment of major software platforms, which are themselves embedding AI into their products. The customization and regulatory compliance built into existing systems won't be easily replaced. Furthermore, giants like Microsoft and Salesforce are deploying their own substantial AI resources to enhance, not abandon, their applications.

Yet, Ramaswamy's argument taps into a powerful trend: data gravity. As businesses centralize their information in platforms like Snowflake, services and AI may naturally coalesce around that data. His forecast sets high stakes for the coming years, framing a fundamental contest over where power and profit will reside in enterprise tech. The outcome will determine whether today's software leaders remain central or are reduced to background infrastructure.